Poet:
The only thing that makes me hesitate is tacking on another two months to the trade, as the longer time means a much slower theta.
The strategy I presented was for someone who is at the brink of getting margin call. It buys time, and in the mean time, you can reposition your portfolio if you need to.
As ed says : it is an umbrella in rainy days (gosh he is such a good writer !!). As you already know, time is usually your ally if you are short put or call, but it can be your enemy during turbulent days.
As for JDSU, moving April to June might not be a bad thing becuase earnings report, after tax payment crunch, etek merge, crono buyout completed, etc, etc. right now we only read people kicking the market when it is already down.
best regards
paul |
