Sunday, September 27, 2015

Twitter Update #18

Sep 18

Analysis


TWTR trade in a tight range all week. At expiration today TWTR closed at 27.96, outside the hedges from last week.


Trade

Trade 1 - Close out the hedges

-2c Sep 18' 27.5 Put @ 0.18
+2c Sep 18' 25.5 Put @ 0.05
+2c Sep 18' 29 Call 0.03
Net Credit: 0.10/c

The remaining short put spread part of the butterfly (25.5 - 23) was left expire worthless. The hedge originally cost 0.05/c to place and was sold before expiration for 0.10/c, a slight profit enough just cover trade costs

Trade 2 - Place new hedges

Butterfly
+2c Sep 25' 27.5 Put @ 0.71
-4c Sep 25' 26 Put @ 0.23
+2c Sep 25' 24 Put 0.06

Short Call
-2c Sep 25 29 Call @ 0.32/c

Net Debit for hedge 0.10/c


-End