This trade was seriously going against me by bouncing up off the 30 day moving average near 80. I had a huge delta risk on this trade at around -$850 which means I was losing $850 a day for every $1.00 the stock moved up! OUCH!
So in using the Analyze tool on ThinkorSwim (TOS), and added 16 contracts of a long call May 70 to hedge against any further loss. This made my trade delta neutral again, increased my probabilities at this time, and gave me some more breathing room.
Bought +16 USO 100 MAY 08 70 CALL @ $16.75 debit
If this trade starts heading back down again, then I will simply sell these 16 contracts back for a credit.
My last cost basis before this trade was $1.41, so now it is 16.75 + 1.41= $18.16
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment