InvestorsHub Logo
Followers 22
Posts 3641
Boards Moderated 4
Alias Born 09/21/2009

Re: Lord DarkHelmet post# 2655

Friday, 09/07/2012 11:36:54 AM

Friday, September 07, 2012 11:36:54 AM

Post# of 2846
Because I was getting too close to Maximum loss of 50% too early,
I bought:

1 SPY Oct12 139 Call at $5.87.

It has a Delta around 81. My net Delta prior was near -166.

I cut my Delta's in about 1/2.

See the new PnL curve...



Still upside risk, but adjusting the spread, gives me some breather room on the downside. It injected more capital into the position though.

You may have problems doing the same. What is your day of entry and original prices on the legs? I will put your spread in and see what you may what to do. You should have to buffer so much delta, because my spread is scaled 15x's greater than yours. Because of that, I would assume you have a negative Delta around -11. That means you probably need to buy a +5 Delta Call to appropriately adjust. If that is true, you need to buy 1 contract of the Oct12 152 Call for about $0.11 / contract midpoint.

Let me know your entry prices and date of entry.



Si vis pacem, para bellum — If you want peace, prepare for war.

Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.