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Thank you for posting the detail of your closing trades. You are truly amazing! Entering a trade is the easy part for me. I find that exiting is much more challenging. It was extremely helpful to me to be able to analyze when and what you did in managing the trade to extract maximum profit. I am very appreciative that you took the time and effort to help me be a better trader.
I, too, am interested in how Teddi exits this trade. I rolled my short 298 puts to the 301 strike for a 40 cent credit on July 20th. I sold/closed my long 307 puts on August 12th, saving me 21 cents. My GTC order to close the call side for 6.90 was hit on August 17th. For me, the trade will net an 82 cent profit per iron condor when the 301 puts expire worthless tomorrow. I managed the puts as noted when SPY moved well above the long call vertical strikes.
Would you mind posting how you exit this trade? Thanks.
Thanks Teddi for a really nice discussion in managing the NKE earnings trade. That was very helpful. I find it quite easy to find trades and enter them. However, it is much more challenging to manage trades when something other than what I expect/want happens. I would love to see more of these types of articles as the opportunity presents itself.
Thanks a bunch,
SteveSuper Charge Buy-Write Strategy Trade update:
I let 80% of the SLB shares get called away December 16th
Profit was 0.25 on the covered calls plus 0.50 divi (commissions not included)For the other 20%
I rolled the Dec 16 83.00 calls out to Dec 23 83.00 calls for 0.26 creditSteve
I still have my SLB shares this am.
My trade details:
BTO SLB @ 85.10
STO SLB Dec 16 2016 83.00 calls @ 2.35
Cost basis is 82.75Getting the divi (50¢) improves my profit potential to 75¢ as long as SLB stays above 83.00 until expiration and I elect to hold my shares until then.
What happened to others that put on the trade?
A VISA news release today (Oct 6) announced 4th quarter results will be released October 24th. Option prices/volatility reflect that. The October 28 expiration option series includes an earnings event. Just a heads up.