JNJ continues to defy gravity this afternoon as the healthcare sector leads today’s rally. We’re further reducing our bearish delta bias and, more important, slashing gamma, by selling half of our stake in this position:
Day limit order
Sell 2 JNJ Jan 62.5 puts
Buy 2 JNJ Dec 62.5 puts
for a net credit of $0.65 or better.
Note, again, that the two contracts specified above represent half of our position in this trade (not half of our total position at 62.5, which also includes the 62.50/65 double-calendar we rolled from last month).