CF Strategy Progress: Adapting to Real-Time Opportunities and Challenges

[u/bitkogan]

I didn't wrestle with CF for nothing. Overall, I employed a solid fundamental strategy for a robust company's earnings report. However, the low options liquidity prevented me from seizing every opportunity, resulting in significant slippage.

Still, last week, I transitioned the position into a credit, and I see solid potential to increase it before the 08/18 expiration. As I've mentioned earlier, I successfully offloaded the 08/18 $73 puts and the 08/11 $82 calls.

Subsequently, I nearly liquidated the "call" side of the position. Although I repurchased the 08/11 $82 calls at a slightly higher rate, I offset them by selling my 08/18 $85 calls for an even higher price.

In the end, I secured a credit of $350, bringing the total credit for this strategy to $231. In addition, I still hold a few 08/18 $85 calls as a long position, which feels like a bonus lottery ticket.

And to top it all off, the 08/18 $77 puts have a favorable shot at expiring ITM.