I decided to take advantage of the drop in BABA this morning and rolled my inverted strangle to the next expiration (NOV) to collect additional credit and extend the duration of the trade. However, BABA has earnings on 11/1, so there is the risk of a large upward move at that time if the news is favorable. This inverted position has an intrinsic value of $45, so my goal with every adjustment is to chip away at that to get as close back to break even as I can before I close the position.
Rolled: five 15 OCT 135/180 BABA inverted Strangles @$3.66
- Bought: five 15 OCT 135/180 BABA inverted Strangles @$47.00
- Sold: five 15 OCT 135/180 BABA inverted Strangles @$50.66
Total Commissions/Fees: $13.44
Balance: $56,943.22
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