EOG double Calendar update

Currently EOG is up marginally at 107.68. It was trading at $106.92 yesterday when we placed the trade.  In less than 24hrs our Apr short strangle has gained significantly and our long May Strangle has changed little.  So far our position is up around $620 and we are in excellent shape heading into expiration in less than 3 days. 

At current IV our max profit at the current price is around $1600.  Theta is currently $396.  I will look to take around $1000 profit if it’s given to me by day’s end (which in theory it will be, $620 plus one day’s decay of $396).  Additionally, theta will be increasing exponentially today as we are so close to Apr expiration.

This can be seen in the thinkorswim analyze tab screen shot below. 

image

I will post updates when I exit the trade or if anything changes.

Leave a reply