ROYAL CARIBBEAN CRUISES: Obstacle Cruise (UPDATE)
We are indeed dealing with the Titanic and keep cruising.
We celebrate our first trade UPDATE.
Implied volatility contracted, yet more time is needed for a price retrace.
We add more credit and time while reducing risk.
1. Recap Situation
This is our first MacroDoζer trade UPDATE. I feel like we have to celebrate. Firstly, all other trades had been successful up to this point, with no adjustments needed. Secondly, you and all the other BrainDoζer Street-Sharps get to see how to roll an option contract and adjust the trade for more credit, reduced risk, and additional time.
A quick recap of the situation.
We are trying to steer the Titanic by selling premium on the cruise company Royal Caribbean (RCL) via a risk-defined strangle (iron condor). Implied volatility was close to 100%, and premium selling seemed reasonable. A contraction of implied volatility played into our hands; however, the underlying price went ahead of itself and didn’t look back since.
Check out the original BrainDoζer below.
2. Why Now?
Parts of our underlying …
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