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IWM rolls 05 AUG – 12 AUG

Here was the status at the end of August 5

I got a bit behind in my reporting, so I'm going to provide one graph and a brief recap for each day.

Aug 6
The price opened up $2 over our straddle centered on 152. So I rolled to 154.

bought to close AUG 07 152 call for $1.39 sold at $1.90 for loss of $0.51 per share
bought to close Aug 07 152 put for $0.40 sold at $1.16 for gain of $0.74 per share
overall gain of $0.17 per share

sold to open Aug 07 153 call for credit of $1.16
sold to open AUG 07 153 put for credit of $0.67

Status on Aug 6
size: 35 contracts
Long Term Hedge: $93,159 or $26.61 per share
Cash Flow to Date: $13,323 or $3.80 per share
P&L to date : $47,612 or $13.60 per share

August 7
bought to close AUG 07 153 call for $1.62 sold at $1.39 for loss of $0.23 per share
bought to close Aug 07 153 put for $0.12 sold at $0.67 for gain of $0.55 per share
overall gain of $0.32 per share

sold to open Aug 07 154 call for credit of $2.39
sold to open AUG 07 154 put for credit of $1.86

Status on Aug 7
size: 35 contracts
Long Term Hedge: $93,159 or $26.61 per share
Cash Flow to Date: $21,844 or $6.24 per share
P&L to date : $47,814 or $13.94 per share

August 10

gapped up to 156
bought to close AUG 07 154 call for $4.58 sold at $2.39 for loss of $2.19 per share
bought to close Aug 07 154 put for $0.92 sold at $1.86 for gain of $0.94 per share
overall loss of $1.25 per share

sold to open Aug 07 157 call for credit of $2.50
sold to open AUG 07 157 put for credit of $1.85

size: 35 contracts
Long Term Hedge: $93,159 or $26.61 per share
Cash Flow to Date: $22,195 or $6.34 per share
P&L to date : $43,374 or $12.39 per share

August 11

IWM opened at 157.50, close to where we anticipated it would finish the day, so we had no need to alter our positions.

Status on August 11
size: 35 contracts
Long Term Hedge: $93,159 or $26.61 per share
Cash Flow to Date: $22,195 or $6.34 per share
P&L to date : $43,374 or $12.39 per share

So we finished this period having sacrificed a bit of our rolling premium revenue. However, this has been more than offset by gains to our long term LEAPS which are unexpectedly showing a positive hoviering in the $3400 range. So we might even consider rolling those to lessen the cost of our long term insurance. But that is the subject matter of another post. Their are pros and cons to doing that and I want to address it with careful explanations.