Mid April we bought ATPG June 20/25 call spread for $1.60 and sold half for 50% profit two days later for $2.40. Now, the stock has taken a sharp U-turn trading below $18 and the call spread has shrunk to $1.00. I am making the following adjustment:
- Buy to close June $25 calls for $0.40 debit
- Sell to open May $20 calls for $0.60 credit
This remaining half position is now converted to May/June $20 call calendar.
Good luck!
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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