Here's where I was today before I adjusted. Notice how the stock is currently toward the lower right side of the slope almost toward the upper breakeven of $86.78. Also notice how my delta is -819.16 which means for every dollar the stock goes up, I will lose $819.16! OUCH!
Today I am removing my 75 and adding the 85 as this stock has been uptrending. Also, I am further mitigating risk by lowering my delta exposure.
SOLD CALENDAR V JUL 08/JUN 08 75 PUT @ $0.95 credit
BOT CALENDAR V JUL 08/JUN 08 85 PUT @ $1.45 debit
This changes my delta risk to -357.85 and shifts my upper breakeven even higher to $91.14.
New cost basis= 2.50 +1.45 - 0.95= $3.00
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