$GPS had earnings after hours on February 27 and I was in a trade with the following structure:
- I was short the March 01 weekly 34 Call
- I was long the March 08 weekly 34 Call
- I was short the March monthly 36 Call (1/2 ratio). This means for every (2) 34 Call contracts I was trading, I was short the March 36 Call.
- This trade was put on for free (tiny credit covered commission too)
- The 3 pieces span across 3 different expirations and provided me a LOT of flexibility for an exit
The stock has a nice up move in after hours and so I formulated the exit plan today for the short piece that expires March 1, 2013. I ultimately was able to buy back the short March 01 weekly 34 Call thus leaving me with 2 pieces. Here was my next adjustment: