IRBT/Jeddah - I think $27.50 is a good floor for them but now 2018s yet. I'd sell the 2017 $28 puts for $4.70 and buy the $23 ($8.75)/$33 ($3.40) bull call spread for $5.25 for net 0.55 on the $10 spread that's $5.75 in the money to start. Figure when 2018 comes out, you can roll the short puts to the 2018 $20s (if you feel the need) so huge discount on the commitment (net $20.55 if goes as planned) and massive upside on a small move higher and still a big profit if flat.
Hey, I just realized we don't have them in the LTP, just the OOP - so let's add 20 of these spreads!
SDS/Scott - Well they are just getting back to our shorting line (1,924) so a good time to go for the Nov $22 ($1.80)/$25 (0.85) bull call spreads for 0.95. They pay 3:1 but don't forget the point is to roll the $22s down to the Jan $20s (now $3.70) before the $22s fall below the net of the spread ($1). The Delta on the Nov $22s is 0.65 so $1.50 move on SDS triggers your roll and the Delta on the Jan $20s is 0.78, so they'd be down to about $2.50 so the roll would be about $1.50 and you'd be in the Jan $20/Nov $25 bull call spread for net $2.50(ish) and then you reduce that when the Novembers expire and you sell some Jan calls (the $25s are currently $1.70).
