Tuesday, August 11, 2015

Twitter Update #10

Aug 10

Analysis

TWTR rallied hard on Monday with the overall technology sector closing up nearly 2.5pts at 29.63. This moved formed a large green candle on the daily and could be a sign of a reversal.

To take advantage of this move, I had a few trades in play. I sold the short call strike, although I could have taken in more credit had I waited intraday. I didn't think the move would be so large. The short call expires this week.

I also rolled the put strike up from the 27.5 to 29 strike in two separate trades during the day. This could have been done in a single trade.  I wanted to capture as much of the move upwards as possible to improve the P/L of the position.

Trades

-2c Aug 14' 29.5 Call @ 0.25/c (GTC order from Aug 7 filled)
-2c Aug 14' 27.5 Put @ 0.33/c
+2 Aug 14' 28 Put @ 0.53/c
Net credit of -0.05/c

-2c Aug 14' 28 Put @ 0.18
+2c Aug 14' 29 Put @ 0.49
Net debit of +0.31/c

Overall net debit of +0.26/c to capture a move of 2.5pts from the previous day.

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