Closed: XBI March 18th 71 Short Put
... for a .20 debit.
Comments: Sold this for 1.41 to reduce cost basis in my inverted short strangle. Closing out here results in a realized gain of 1.21 ($120) on that leg. Cost basis on the remainder is now 12.46, with a downside break even of the short put leg (99) minus credits collected (12.46) or 86.54 relative to where XBI is trading right now at 86.34, so I'm not in horrible shape. I will consider re-erecting the short put if we get further weakness or rolling down the short call further since it's I've collected 12.46 on a six-wide, leaving me with room to invert further if I have to.
Comments: Sold this for 1.41 to reduce cost basis in my inverted short strangle. Closing out here results in a realized gain of 1.21 ($120) on that leg. Cost basis on the remainder is now 12.46, with a downside break even of the short put leg (99) minus credits collected (12.46) or 86.54 relative to where XBI is trading right now at 86.34, so I'm not in horrible shape. I will consider re-erecting the short put if we get further weakness or rolling down the short call further since it's I've collected 12.46 on a six-wide, leaving me with room to invert further if I have to.
Commentaire:
Going ahead and rolling down the 93 short call to the 90 for a .93 credit to cut net delta, so I've now got the April 14th 90C/99P 9-wide inverted on which I've collected 13.39 with a put side break even of 85.61.