Why I adjust trades

For those that follow me on twitter and/or StockTwits you are likely aware that I adjust trades throughout the week for a variety of reasons. I did one adjustment in $TSLA today that looks to be one of good timing:

TSLA_trade_adjThis was originally a long stock position in the Fab 5 (for the $100 Roll) and it certainly went well past achieving that goal. I had left the position on and had added a Collar along the way. The chart looks extended so I wanted to continue to move up the Collar strikes. This latest adjustment puts the current Collar at:

  • short the October 160 Calls
  • long the September 13 weekly 150 Puts
  • with all the adjustments that I have made up to this point (feel free to review the latest Fab 5 posting on my Blog) I have a net on Options of -$20

The premium in the Collar has moved considerably since I did this adjustment this morning and is offsetting the pullback in price very nicely.

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