Adjust - EEM 130 to Double Calendar (130/40(!!))
Written on August 8, 2008 by OptionsRopeaDope
This is a strange one due to the EEM split a couple of weeks ago. As mentioned in an earlier post I closed half the original position (at 130). Yesterday, I opened another calendar when it reached break even. I had a choice between the 41 strike and the 40 strike, and chose the 40. Had to make sure I purchased 3 times as many of the 40 strike contracts as I owned of the 130’s to balance them out. With the further drop in EEM, I’m mildly down right now (4%), but it would be much, much worse without the adjustment. And my breakevens are fairly wide, about 39.50 to 43.75. I can tolerate another 3-4% drop in EEM now and still escape with a profit.
The right-most spike is at 43.33… freaky!
In other trade updates - I closed the put wing on my QQQQ condor for .01. Looking nice all around, this rally doesn’t hurt a bit.
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Posted in Real Trades, Calendars, EEM
i found you while looking for dan sheridan. think i’ll drop in often to follow your trades. i need to learn the greeks by several accounts but am finding different deltas and implied vol for exactly the same position on different platforms like optionvue and think or swim or iv.com etc etc. i hope you keep the blog going for a couple of months.