Wednesday, June 11, 2008

ADJUST: HD Calendar to Dbl Calendar

Yesterday, I opened the trade as follows:
BOT CALENDAR HD JUL 08/JUN 08 27.5 PUT @ $0.44 debit
My breakevens (B/Es) were at 26.02 & 29.13.
Position is sized for max loss.

Today I added another calendar to hedge on the downside:
BOT CALENDAR HD JUL 08/JUN 08 25 PUT @ $0.47 debit

My new B/Es are at 24.52 & 28.13...so this gives me more wiggle room and protection on the downside.

My new cost basis is 0.44 + 0.47= $0.91

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