Exercising: SOFI 2 x 15 August 20th Long Calls
... and closing August 20th 20 Short Call and opening September 2x 20 Short Calls.
Notes: This is a trade that started out as a call ratio where I bought 2 x the 15's calls and sold a 20 call in the August 20th expiry, after which it promptly moved toward 15.
I'm inclined to think that it will need more time to work out, so exercised the long calls today to take on a two-lot of shares before more of the extrinsic value pisses out of them and then proceeded to sell calls against the two-lot in the September monthly. In a nutshell, I'm converting it to a 2 lot of September 17th 20 covered calls, which was basically my original plan if I didn't get a fairly immediate move.
Here's the math:
Original Setup: 5.79 Debit
Exercise of the Long Calls and Close of the August 20th 20 Short Call: 27.75
Subtotal: 33.54 debit ($3354)
Cost Basis Per Share: 33.54/2 = 16.77
September 20th 20 Calls: .60/contract Credit
Resulting Cost Basis: 16.17/share
And we'll see how things go from here.
Notes: This is a trade that started out as a call ratio where I bought 2 x the 15's calls and sold a 20 call in the August 20th expiry, after which it promptly moved toward 15.
I'm inclined to think that it will need more time to work out, so exercised the long calls today to take on a two-lot of shares before more of the extrinsic value pisses out of them and then proceeded to sell calls against the two-lot in the September monthly. In a nutshell, I'm converting it to a 2 lot of September 17th 20 covered calls, which was basically my original plan if I didn't get a fairly immediate move.
Here's the math:
Original Setup: 5.79 Debit
Exercise of the Long Calls and Close of the August 20th 20 Short Call: 27.75
Subtotal: 33.54 debit ($3354)
Cost Basis Per Share: 33.54/2 = 16.77
September 20th 20 Calls: .60/contract Credit
Resulting Cost Basis: 16.17/share
And we'll see how things go from here.
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