Tuesday, June 23, 2015

TWTR - Update #1

Jul 3 


TWTR has been moving in price. It is down to about 35.22 and the hedge portion of the trade has gained in value. There is one week to expiration and the hedge is worth about 0.50. If price ticks down slightly and with a few days of additional theta, the hedge will be able to purchase close to 2 additional shares.


No adjustments. Here are the greeks and the risk curve of the hedge portion of the trade. The butterfly zone is the sweet spot and where I am looking to close the hedge to fund buying more stock.