So I just took advantage of this recent move up in TWTR to re-position my naked June $47 put. I originally set this play up back in March, collecting $465 of premium on 1 contract sold. Man, it's been a stinker ever since, until recently. Today I was able to roll it out to September and roll it down a few strikes to $44. The move cost me $150. So subtract that from the original $465 and I've still got a total of $315 in premium.
Now, obviously I had more than week before June expiration, so why make this move now? Well, when you're short a deep in the money put, it's very possible to get assigned early. I know this because it's happened to me twice this year. I didn't want to take any chances and today's 4% plus spike gave me the perfect opportunity.
Now on to FB...
Yesterday I went long the stock @ 65.31. Additionally I sold a weekly 64.50/64 credit put spread collecting $100 of premium. Now, I'm still long the stock and I have every intention to ride this thing to $70. However, I did close out my put spread this morning for a small $10 profit. The main reason I did this is because I'm not going to be able to babysit this position for the next two days. I run a couple businesses and I'm going to be in and out. You really need to watch weekly options closely, especially with a high beta name like FB. Additionally, with a broad market that seems to want to go lower, an intraday chart that's looking a bit broken AND the highest open interest on the $63 strike... it's possible FB closes BELOW 64.50 tomorrow.
I just didn't want to take any chances as I'm already down this month, AND I'm staring another big loss coming up next week with my 189/190 SPY credit call spread.