We’re starting out the process of unwinding the remainder of our JNJ portfolio by closing the most volatile position (i.e., the one with the most negative gamma), as follows:
Day limit order
Buy to close 2 JNJ Dec 62.5 puts
Sell to close 2 JNJ Jan 62.5 puts
for a net credit of $0.75 or better.
Note that this order closes our remaining position in CS#3, but it does not liquidate our entire stake at the 62.50 strike. We’ll still have open contracts in the 62.50 puts from the 62.5/65 double-calendar and from what’s left of our butterfly hedge position.
Also note that Supplemental Trades are not autotraded, and that, naturally, anyone who did not participate in this series of Supplemental Trades would not place the above order.