Tuesday, July 31, 2012

Cover short LGF puts

Buy back short LGF Aug 14 puts @13.7
I am taking a beating on this leg of the short strangle, closing this leg with a big loss. However, if the Aug 16 call expires worthless as is likely, then the short strangle position nets out to near break even, and that one reason why I am closing this leg--to avoid turning what was a winning trade into a loser.

Lions Gate earnings due on 8/8, so I am taking some risk off as the position moves against me. I am still short Aug 13 puts, Aug 16 calls, Sep 13 puts, still net long LGF.

Net long LGF IWM SPY

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