TJX – STATUS REPORT 24 AUG

TJX moved up according to our expectations.
fast_prognosis_24aug
We now expect a continue move up over the next week, so we will play to upside. We bought back our 67.50 short puts and sold short 70.00 puts, collecting $76 in premium. Do not consider this positive cash flow a gain! Our gain loss so far reflects a $34 loss, the difference in the transaction costs of our $67.50 put.

Our new risk profile looks like this:

tjx_snapshot_24aug

We now have positive theta (0.74), positive delta (14.24) and positive vega (6.88). This benefits from the passage of time and a rise in the stock price, but will suffer a bit if volatility decreases a lot. We don’t expect much of a drop in volatility, so this is acceptable.

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