Friday, March 14, 2008

ROLL: CAT Mar to Apr/May 70 Put Calendar

I rolled my Mar 70 put to Apr today since it's a week before expry. Remember, you don't want to roll in the last week of expry because market makers will such out value fromvolatility & theta decay. Granted, now looking back I should have rolled this back on 3/11 when the stock was right around 70.

I bought back the Mar & sold the Apr for a credit of $1.47. My original cost basis was $1.89 so now my adjusted cost basis is $0.42.