Phew! The weekend is finally here. Today I used a butterfly roll to move my 1825/1900 call spreads to 1900/1975. I did not want to add an additional iron butterfly because it was Friday, will see where we are on Monday and do so if needed. So far I’m down about 13% and looking for the weekend and a quiet Monday to take some of the heat off the position. Depending on where I am on Monday I’ll dive in with the extra butterfly and pump up my Theta.
2 comments:
Hello, why do you roll the whole spread up as opposed to just rolling the short call up?
Hi There, this is an adjustment I've started using a while back. It gives me the extra theta and if needed I can always add up another smaller iron butterfly on top to help pay for the roll. I didn't add the extra butterfly this time because the market seemed to be moving up too fast and I didn't want to go all the way and burn all my amo.. But if we keep going higher that's an option.
In the past, I've seen that rolling just the shorts didn't quite do the trick if we kept moving up, as sooner or later you run out of space to move before your long calls.
I guess could be a matter of preference..
Gustavo
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