Ready-4-ER-at-14
Full time employment: Posting here.
Hi, I had some amazon stock that i sort of wanted to partially protect so I had some vertical call debit spreads out to dec of 22. found I ended myself long a 136 put short a 130 put. It is later October as i write this wit still six weeks of time left. I probably paid around 3.00 for the spread.
At one point amazon was around 100 and i was sort of amazed I got all but 10 cents on the 136-130 spread netting $5.90. I even saw the midpoint between bid and ask at 5.95 for a second. Not a huge deal at one contract but lately I have been doing 4 contract vertical spreads and always try to improve what i do.
Upon thinking about this I probably could have done smarter things with this as there was both time value and intrinsic value. maybe the buyer just considered getting <$10 for letting the options mature at 6.00 spread at assignment worth it?
I replaced this with a 100-90 put debit spread out to February i think.
Maybe some sort of time spread conversion would have been better?
At one point amazon was around 100 and i was sort of amazed I got all but 10 cents on the 136-130 spread netting $5.90. I even saw the midpoint between bid and ask at 5.95 for a second. Not a huge deal at one contract but lately I have been doing 4 contract vertical spreads and always try to improve what i do.
Upon thinking about this I probably could have done smarter things with this as there was both time value and intrinsic value. maybe the buyer just considered getting <$10 for letting the options mature at 6.00 spread at assignment worth it?
I replaced this with a 100-90 put debit spread out to February i think.
Maybe some sort of time spread conversion would have been better?
