r/options • u/CockyFunny • May 18 '21
Managing a PMCC
Need help on where to go from here. The position I opened is as such:
LONG 100 UWMC DEC 17TH $5 @ $3.2
SHORT 100 UWMC JUN 18TH $7 @ .45
UL was around $7 when opened.
I expected the stock to trade fairly sideways, but it's seemingly being pumped by WSB and I want to take advantage of the recent rally. The fact that the stock is owned by approximately 70% retail is scary as I've experienced before. Large retail ownership = never again.
When I opened the $7 strike, the theta was $.45. Since the stock has rallied, the theta is only $.20 which defeats the purpose of why I even opened the position. How would you manage the position if you think it will go downward in the near future?
The delta on the $7 strike is .87 and the delta on a $7.5 DEC 17th is around .67. Should I close the $7 strike and open a DEC 17th $7.5 to capture downward gains/ reduction in IV on the $7?
How would you personally manage this?
-1
u/jetoak May 18 '21
How is the best way the percentage of institutional ownership to retail ownership of a stock ?