Thursday, May 5, 2016

Removing the May Position


     With the position being on for a few weeks, once I hit over a thousand dollars in profit on Tuesday I decided to take the position off. On Monday however, I had to adjust the position because it had accumulated -127 Delta with a sudden rise in the market. I added three verticals to the position to make the Delta -88 and since the market was inside the tent, the value was within the -100 limit. The position was closed with the Greek values of 21 for Delta (would have been a problem if I hadn't decided to take it off), 415 for Theta, -679 for Vega, and -8 for Gamma. The total profit of the position when taking it off was $1213.

The risk profile graph from Tuesday can be seen below:

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