Hey guys, I recently put this trade on. BBRY @ $10.50. at the time A)-4 BBRY call 10.00 Mar 21 @ $110 = 440 B)+4 BBRY call 9.00 Mar 21 @$181 = 724 today BBRY went sub $10. and I'm not willing to see if it goes back up. So what i did was, i rolled down the position to, C) -4 BBRY call 9.00 Mar 21 @ $130 = 520 D) +4 BBRY call 8.00 Mar 21 @$220 = 880 From my calculations, it seems that if at expiration, its still trading above 9.10, then I've broken even. Can someone confirm this? my calculations are as follows: A) Closed at $77= + $132 (after commissions) B) Closed at 130= - 204 (208 with commissions) = net loss of $-76 New position CD at expiration, C) $+520 D) $- 880 Total net from ABCD= $-76 + -$360 = $-436 At expiration, if BBRY is at 9.01 -436 + 400. = -36. Net loss of $36. vs $76.
Not double down. You assured a loss on the trade. A vertical is already limited on risk, you can close it if you are wrong, which you did.....you just can't save it. I'm a bit more conservative...would have just sold the 7 or 8 put ( if bullish) then kept rolling out until right.