Hi 3X! The proposed ab = cd (click above) happened today when SPY reached 92.7 and I bought to close June 93 puts previously sold, as posted. They were at the money and the time decay did its job, so that I made a healthy profit. For those who might follow this trade, I originally sold to open June 91 puts which were also bought back for a profit at the time of rolling into short 93 puts. Getting out of this arm of the trade was driven by prudence, although there might be some more blood to be squeezed out of it when the premium will approach 0 toward the end of the day. On the other hand the long arm is not in danger. The originally June 91 calls (sold to open) were cashed for a profit and rolled into short June 94 calls, which will probably expire today worthless and will leave some more profit behind.
Thus, for the next week I will be left with an SPY July strangle: 91 puts + 96 calls. Since the call arm of the strangle is weaker, I am enforcing the short term DOWN bias (see +/- 1.382 SD regression channel on chart) with a long BGZ position.
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