Saturday, December 14, 2013

Weekly Review

Trade 1 : Selling ASML Vertical Spread DEC2013 87.5/85 Put

ASML drop down to 88.10, just 0.60 above our higher strike price of 87.5.  This is not looking good.  With another week to go, will ASML hold above 87.5?  The spread was sold for 0.35.  So, the Break Even point is 87.15 (87.5 - 0.35).  If ASML goes below 87.15, I will start to incur loss.

The Loss is now $130.

It was said that Delta is another way of looking at the probability that the option will go ITM (In The Money).  Delta for 87.5 Put is currently at 0.4135, which means 41.35% of getting ITM.  This is very bad.

Can I roll?  Should I roll?  Rolling is a concept that I still have not grasp.  To me, it is no difference of closing the current position and open a new position.  Anyhow, I will cover/explore this in another post.

No comments:

Post a Comment