Above are some ALTERNATIVES for rolling out of the current positions that have gone against us. As you can see the strategy is rolling up the strike prices and out to the next month
to buy you more time to hopefully make the spread workout.
There are several options for different strike price rolls and the same alternatives if you desire to Double the number of contracts.
( e.g 10 to 20, 5 to 10, 20 to 40 )
As I mentioned earlier I do not like to put bandages on things that might continue to bleed and will continue to hold and dispose of
the positions during this week as it becomes necessary.
I will not be rolling, except in rare cases and you will be notified as always.
However, there are a couple of positions that could hit the MAXIMUM LOSS if they were to close above BOTH the SHORT STRIKE and the LONG STRIKE ,
so the above alternatives are available to you.
Specifically, those positions would potentially be CTXS, APKT, TM , EBAY.
I have included COF and MCO as these issues have the same potential as well, but are not currently as eminent as the four (4) positions mentioned above in RED.
expiration or as long as possible.
There is a good chance I will hold COF and MCO until expiration.
CAVEAT: These are the prices based on Friday's Close and would possibly only available if the market had little change on the opening on Monday
and you wanted to do any of the above adjustments. Hence, the prices that you see above will probably have to be adjusted.
Once again, these are only suggestions for you should you decide to roll out to the next month and try to reduce or even eliminate the current potential losses we might incur this Friday.
However please examine the last column as it shows the additional risk that will be
incurred if the stock closes above BOTH the August SHORT and LONG strike prices.
Additionally, If you also believe any of the above issues will remain in a trading range you can also sell the put side of that issue in the August cycle and further reduce your
loss and you may even be able to show a profit.
This would reduce your maximum loss you could sustain
for August if any of the issues continue to go up and close above BOTH long and short strike price and reach maximum loss.
You can also place a STOP on the August position if you desire to limit the loss additionally.
REMEMBER: Rollovers only work when the stock performs as we predict based on the trade.
Finally, any rollovers will tie up margin, so if you decide on any rollover take margin requirements into consideration, especially if you are going to double
the number of contracts on the roll over.
Be sure you have the margin in your account and more importantly determine if you want to double your exposure,
and remember you can always add the put side fo no additional margin over and above
your additional margin for the call side, with the right broker. ( most brokers are the right broker this day and age )
Rolls that could turn the trade PROFITABLE ARE NOTED IN GREEN ABOVE
Also NOTE: These trades require the doubling of the number of contracts