Thursday, August 07, 2014 4:41:13 PM
Trade Structure
IBM Oct monthly.
71 days out. Low theta.
I give this five days to work out.
If price is still near where it was on entry I bail
down about 60 bucks from theta decay. But if I get
a 10 dollar move either way in the next five days,
it's green. This is a bullish biased set up. Buying
a put at half the delta roughly, as the call. A larger
move, more than 10 bucks either way is desirable.
That is unless my figuring is wrong. The arrows are
pointing to the theo price which is typically my fill.
Cheers
IBM Oct monthly.
71 days out. Low theta.
I give this five days to work out.
If price is still near where it was on entry I bail
down about 60 bucks from theta decay. But if I get
a 10 dollar move either way in the next five days,
it's green. This is a bullish biased set up. Buying
a put at half the delta roughly, as the call. A larger
move, more than 10 bucks either way is desirable.
That is unless my figuring is wrong. The arrows are
pointing to the theo price which is typically my fill.
Cheers
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