It's Thursday, so new options for next week have been announced. It's time to see what needs to be rolled and what we'll leave alone with the hope that it expires.
I have a 5 contract HD 80/77.5 bull-put spread that expires this week that I've rolled for a few months. It's currently ITM as HD is trading at 77.85. It looks like rolling it straight out to Oct '13 will produce a $.44 debit. Not really ideal, although I do have a total of $.89 worth of credit at this point to work with.
The other option is to expand the risk from $1,250.00 to $2,500 by rolling to 80/75. The probability of breaking even on an this expanded roll is currently 48%. This would provide a $0.33 credit.
Well after some hemming and hawing, I decided to roll it straight out for a debit. I figure it's probably safer to cut my profit than to expand my risk. I'm trying to avoid getting greedy, but it's hard.
I also have a SPY 172.5/173.5 Bear-Call spread that isn't looking too promising. Everything was going well until the Fed announced yesterday that they were holding off the start of the Tapering of the Quantitative Easing. After that announcement, SPY shot up 1.5% and blew through my 172.5 strike on its way to the 173.5. It's since pulled back a bit today. It's currently priced at 172.83 (-.13%), so I think I'm going to hold off rolling it until later today or tomorrow in the hopes that it continues to decline a bit more.
