July 5, 2016  Trade Alert -  Rising Tide  Portfolio

Rolling another short call down to a lower strike will increase theta:

 

BTC 1 COST 08Jul16 157.5 call (COST160708C157.5)
STO 1 COST 08Jul16 155 call (COST160708C155) for a credit of $1.06  (selling a vertical)

BTO 1 COST 21Oct16 155 call (COST161021C155)
STC 1 COST 21Oct16 157.5 call (COST161021C157.5) for a debit of $2.48  (buying a vertical)

Be prepared to change these price limits by $.05 or more in order to get an execution.

 
Happy trading.

 

Terry