Amzn – Naked Call – Adjustment
December 3rd, 2009, 11:09 am EST. Posted under Margin Portfolio (MP) by ThetaTrader.
Post Tags: , AMZN, CLOSED
12/03/2009 – ThetaOptions Margin Portfolio – AMZN Naked Call Sell
Ok, we really need to stop the pain here! We’re going to sell another naked caller for the month of DEC in order to decrease our cost basis and protect the trade to the upside. However, this time we’re going to add a little protection with (2) butterflies. We may add another one next week as well.
Order:
Sell To Open: (1) Dec 145 Call – $5.25 Credit
Buy To Open: (2) Dec 150/155/160 Call Side Butterfly – $0.59 debit
Position: Requires $7000 margin now.
Below is our maximum loss line; hopefully AMZN doesn’t cross it….but that would equate to a 75% increase in the stock price within 7-8 weeks. Now does that really make sense to anybody?
************************** Day Trade Update – 2:33 EST ********************************
We bought back the (1) short caller for $3.25 ($200 profit). Our Cost basis is now $4.25 on the (1) short caller & our margin went back down to $3000. We only need (1) butterfly, so we’ll probably sell it next Monday.
Position:
