AyKing
01-23 06:37
I opened 1 lot(s) $IWM 20250214 235.0 CALL$  ,

This is the rolled position of the diagonal spread. The long call of the diagonal spread is strike $235, DTE 21 Feb. Therefore, the rolled position is actually converting the diagonal spread into a calendar spread.

I have chosen the strikes and DTE based on the considerations of delta, theta and the cost of the roll. So, overalll, the rolling gives me a credit of about $0.12 ($2.27-$2.12).

Happy with the rolling. :)

IWM CALL
01-22 23:10
US20250214 235.0
SidePrice | FilledRealized P&L
Sell
Open
2.27
1Lot(s)
+9.92%
Holding
iShares Russell 2000 ETF
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Comments

  • FrancesWesley
    01-23 10:31
    FrancesWesley
    Sounds like a solid strategy
    • AyKing
      Diagonal spread is good for good stocks climbing up slowly. If stock climb up fast or goes in the down direction, than bullish diagonal spread may not be suitable.
  • CINDYTAN
    01-24 05:51
    CINDYTAN
    [Smile]
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