I had a diagonal spread (ITM leap and a Feb 110 short call)..so using the strategy ive mentioned previously about adding credit put spreads to a ITM diagonal, on 26jan i added feb105/110 credit put spreads at .60.. was few days after earnings..stock did not give up any of the earnings move. since my short call was 110level that was what i was shooting against.. 110 also lined up to about the 50day MA. So the idea again is that i would be holding the LEAP regardless of the price movement, if stock dropped back towards 110 i would gain on the short call, helping to hedge out the credit put spread which would just get rolled down and out to march if needed.
Best case is stock continues up from my sell point..so over the course of 2weeks the stock maintained its post earnings channel netting me some time decay and on 7feb it broke out of top of channel as noted by a few others on twitter , so i also gained in price appreciation (stock goes up, value of spread goes down). thus, closed the spread for .05 for total gain of 92% of max profit for about 2week hold. additionally i rolled that short 110febcall to the 110 march for credit since the delta of the feb was getting 98ish. this is an example of what they always say on Options Action... Make money if the stock goes up, down, or sideways.
