Rolling: QQQ May 20th 385 Short Call to May 20th 376
Updated
... for a 1.38 credit.
Comments: A small delta adjustment here to realize a gain on the call side, recenter my risk, and get a credit for doing it. Both sides are now at the 18 delta (ish) strikes, with net delta basically flat. Total credits collected of 10.88 with 77 days to go.
I generally wait for side approaching worthless/side test to do an adjustment, but you can also do adjustments with greater frequency, depending on how "delta anal" you are. Alternatively, you can monitor your theta/delta ratio in the position and look to make adjustments at certain theta/delta ratio intervals (e.g., 2:1, 1:1, etc.). Here, the position wasn't all that skewed out from that standpoint and is currently at 16.38/1.31, so I could've probably also just left it alone, since a theta/delta ratio of >1 implies that theta decay will be such as to outpace any change in the delta of the position (at least when looked at from that snapshot of the position in time).
Comments: A small delta adjustment here to realize a gain on the call side, recenter my risk, and get a credit for doing it. Both sides are now at the 18 delta (ish) strikes, with net delta basically flat. Total credits collected of 10.88 with 77 days to go.
I generally wait for side approaching worthless/side test to do an adjustment, but you can also do adjustments with greater frequency, depending on how "delta anal" you are. Alternatively, you can monitor your theta/delta ratio in the position and look to make adjustments at certain theta/delta ratio intervals (e.g., 2:1, 1:1, etc.). Here, the position wasn't all that skewed out from that standpoint and is currently at 16.38/1.31, so I could've probably also just left it alone, since a theta/delta ratio of >1 implies that theta decay will be such as to outpace any change in the delta of the position (at least when looked at from that snapshot of the position in time).
Trade active
Being more adjustment aggressive here ... . Rolling the 376 down to the 358 for a 3.10 credit to delta balance the position. Total credits collected of 13.98.
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