Stock / Symbol: S&P500 Index / SPX
Option Strategy: [private_monthly]bear call spread[/private_monthly]
Trade entry date / price: May 14 / $1647
Price at this adjustment: $1668
Reasoning: Upside stop triggered. Rolling up the call spread. The revised greeks will be: -4.7 delta, 6.5 theta, and -30 vega. Setting a new upside stop at [private_monthly]1691[/private_monthly]. While this adjustment helps to flatten out the risk curve, bring the delta closer to zero, and raise the trade's loss point, it doesn't leave us with a profit by expiration. We'll need to add an additional call spread or put spread to add the profit potential back to the trade.
Trade Details:
[private_monthly]
BTC -2 SPX Jun13 1715 calls
STC 2 SPX Jun13 1725 calls
STO -2 SPX Jun13 1735 calls
BTO 2 SPX Jun13 1745 calls
for a max net debit of 0.95 per contract (day order, limit order). Try for the mid +0.05. The mid is currently at $0.80.
[/private_monthly]
Max Risk: $2,010
Max Reward: ($10) @ [private_monthly]0 - 1735[/private_monthly] by Jun 21
Suggested Upside Stop @ $1691
