I have a current position in $LULU
- I am long stock
- I am short the 75 Calls
- I am long the 70/60 Put Spread
Here are a few scenarios on how this can play out:
1) stock goes nowhere. Fine. I will do nothing until expiration next week
2) stock pops to $75. Also fine. I will likely adjust to October options when I fee that it has stalled (put on a new Collar)
3) stock tanks to $60. Ugh. Well I guess that is fine too. The Put Spread offsets the loss on the long stock piece (if did not sell or let it Stop out).