using a Collar to ride a wild move starring Twitter

I received several questions regarding my strike selection in my current $TWTR trade so I thought I would provide some detail in a post. I am currently long stock from $41 with a January 3 Weekly options collar. Here are some details:

I initiated the trade by selling Option premium once it started trading (trade done on 11/15)

I made several adjustments along the way including the long stock entry

Here is where I moved the strikes up to $62.5 for January 3 Weekly expiration:


You will notice that I have a negative Options Net due to the rolling up effect

I then BtC the January 3 Weekly 62.5 Calls as they stock continued to run later that same day

Here is the latest adjustment:


So this means I am long stock with the January 65/62.5 Collar

Most of the strike selection had to do with measured move & Fibonacci targets. Keeping the short premium ITM allowed me to manage the position for the expected pullback. So far the strike ranges have worked well as price is arm wrestling the $65 level today with expiration tomorrow.

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