His Position is
""Ok, I have an abnormality (I think) happening, what should i do? I bought some april FAZ puts at 9 and calls at 10. they are both up. which do i get rid of? or should i hold them both?""
I do not see how this position is going to blow up in his face, Perfectly honest, it's not a bad play at all, protected BOTH WAYS
Taking last quotes
Faz April 9 puts last $1.06
Faz April 10 Calls last $1.70
Faz closed yesterday at $10.10
So, if the market goes down and faz heads to $12 (which it can do in a few days) that would put his $10 calls +$2.00 ITM, which they are only .10 now, that would raise the prem of the $10 call to somewhere around $4 PLUS, so at that point he could pull half off and have pretty much a free trade, still have half his calls and all the puts, so if the fins keep tanking, take his profit in the calls at what ever his goal is, and still have the puts, so when the market rallys into next year (which imo they will) he can profit from his puts, which were already paid for!!
Options are NOTHING like playing Penny Pumping pinkie, and if your a perma-short, you will also lose..
