No. of Recommendations: 4
Well, it has been a few days (with no comment), so I thought I would update everyone to see what has changed.
1. The market for GOOGL has dropped rather significantly (currently at 127.82).
2. I wound up with the: "Don't just do something, stand there" approach and didn't do anything.
It is useful to see what would have become of the two different scenarios today, what I did, and what I proposed above.
The "do nothing" approach: still sold the calls at 9.10, and could buy them back today at 5.55, or roughly 40% of the potential profit.
The "roll up and out" approach: Buy back the Nov 130's, sold the Dec 140's, but them back today at 3.10, for a net gain of 11% of the potential profit of the original position.
Of course, I had no idea GOOGL was going to head south along with everything else in the intervening time!
--G
