I made the comment in the X / Twitter stream the afternoon, that I was exited the UBER trade; which was a defensive roll to an original position.
Too much gamma, this close to expiration as UBER began to rally again. And we have earnings coming up, so I’m just going to exit it and eat my loss, exit the spreads at 0.20, which on the Options Trades for the month put me down -0.17% or 17 Basis Points.
I then turned around, and sold 1 PARA Put, cash covered.
For the GTC Sample Portfolio, that means selling 1 PARA Feb 23 11.50 Put for 0.19. The VIX is at 13.72 and the IVR on PARA was 44.8. The 11.50 Strike was at -0.17 Δ’s, with a 41% PoT. The expected range on PARA $11.75, with 35 DTE. With that premium, that brings us to down only 10 BPS for the month on the options trades alone. Of course, with the other trades in the portfolio, we’re doing more than fine. Naturally, the PARA position is ongoing, and subject to net-liq. But it’s a cash covered position, and a small one at that that can be defended into near infinity.
And yes, I’m still looking at USO for a possible trade …
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