Condor Rollover on LRCX

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I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.


I Hope this helps,


Juan

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The LRCX trade looks good. If there is no spike in volatility yet, as we approach FEB expiration. The Feb shorts are now declining in volatility at a faster rate than the March shorts. At the same time, the stock is showing signs of a rally. I have decided to do the rollover today, but one could do it tomorrow too. If Delta becomes the dominant force, Theta is going to get in the way.

This is what I did, as you can see, the trade got filled without much problem.



Here is the resulting trade. My debit has been decreased substantially, and the profit is good so far. It looks like LRCX will break out higher.



Critical to the rollover execution is the difference between the volatility of Feb vs. March options. The Chart below indicates that the Feb options are on the decline (in volatility) faster than that of the March options.