Thursday, April 12, 2012

$JOY roll comments

12apr - had an Apr 72/75 credit put spread since right after earnings...was looking ugly for a while and came back today. with stock at 77. stock has moved day to day based on what may or may not be happening with china growth. stock is up $3+ today..when stocks are up rolling to next month works in your favor.. so instead of playing chicken with this spread right up to the opex date and the once a week china pmi's, im going to roll this to may.

since stock is up 5% the pricing works in my favor..i am able to lower the strikes from the apr 72/75 down to the may 70/72. plus i did not need to increase the lot size..was able to stay the same size AND lower the strikes and i did it for a small credit. Win-win-win for me. and i get another 30days. Add that small credit to the cost basis from Apr is the new "breakeven" price.