Post by cosmic on Feb 1, 2011 14:58:57 GMT -5
Purchased LVS at 48.05. Sold equal number of $50 Feb 4 calls at .92.
I kind of like these plays, and the weeklies are a good chance - this is the first time I've done an LVS weekly play. The Feb 4 50 call has a Theta of -.24, it expires in 3 days, that Theta go more negative tomorrow. That means that even if the price of LVS approaches $50 making my OTM short call go ITM, that call HAS TO DECAY unless LVS tops 50.90 - entirely possible of course, but more than unlikely.
This is a covered call play, so even if this occurs I will collect 1.95 in stock rise in price if called.
I kind of like these plays, and the weeklies are a good chance - this is the first time I've done an LVS weekly play. The Feb 4 50 call has a Theta of -.24, it expires in 3 days, that Theta go more negative tomorrow. That means that even if the price of LVS approaches $50 making my OTM short call go ITM, that call HAS TO DECAY unless LVS tops 50.90 - entirely possible of course, but more than unlikely.
This is a covered call play, so even if this occurs I will collect 1.95 in stock rise in price if called.