Herm, I missed my sale of VVUS Oct 35 PPs at 1 7/8 today, but I
bought back my Nov 40 calls for 1 7/8 for a 2.69 profit including
commissions. DIPPITY half of DIPPITY DOO. Ka-CHING!
I missed selling the 35 PPs by an eighth or sixteenth,
but I'm not feeling too bad about that, especially after
recomputing the Oct option parity at the 32.5 strike. In fact,
I was feeling queasy about selling my fire insurance
while the roof was smoking! These puts may run up another
dollar by Friday. At least the pressure from the options is
in that direction.
But I got into VVUS with high NUT, 41 1/2 plus 11/16 for the
Oct 35 PPs, net 42.19. Now my nut is down to 39.5
minus whatever the Oct 35 PPs end up being worth (the nice
thing about PPs is, they're never worth less than zero!).
Still, my execution needs a lot of work, which is why
I'm sitting here with a 4-point loss including the PP and CC,
but I'm learning every day.
I'm working on 500 shares; can't quite justify
1000 at my stage of learning, so I multiply by 5 where
you're multiplying by ten.
My next two moves, in whatever order they present themselves,
are to (1) roll the pps to a later position, as the Oct 35s
have only a few days left, and (2) sell another CC (completing
the DOO half of DIPPITY DOO).
Any comments as to the right points to carry out these moves?
Or comments on the moves themselves, for that matter.
Thanks,
Spots |
