Rolling (IRA): September 3rd 198 to October 1st 194 Short Put
... for a 1.37 credit.
Comments: With this contract at greater than 50% max, rolling down and out for a realized gain of what I put it on for (2.01) (See Post Below) minus its current value (.79) or 1.22 ($122) credit. Going with the expiry nearest 45 days until expiry/16 delta strike. Total credits collected of 2.10 + 1.37 = 3.47.
Were I not to have been able to strike improve and receive a credit, I would've probably just left it alone another week and added a unit instead. By rolling it out, I (a) realize a gain; (b) receive a credit (reducing my cost basis further), (c) move the strike away from where the underlying is currently trading, thereby reducing buying power effect slightly; (d) diminish risk by being a strike further away from at-the-money; and (e) keep buying power free for "the next one" (although implied volatility is pretty decent here at 27.8%).
Comments: With this contract at greater than 50% max, rolling down and out for a realized gain of what I put it on for (2.01) (See Post Below) minus its current value (.79) or 1.22 ($122) credit. Going with the expiry nearest 45 days until expiry/16 delta strike. Total credits collected of 2.10 + 1.37 = 3.47.
Were I not to have been able to strike improve and receive a credit, I would've probably just left it alone another week and added a unit instead. By rolling it out, I (a) realize a gain; (b) receive a credit (reducing my cost basis further), (c) move the strike away from where the underlying is currently trading, thereby reducing buying power effect slightly; (d) diminish risk by being a strike further away from at-the-money; and (e) keep buying power free for "the next one" (although implied volatility is pretty decent here at 27.8%).
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