We’re taking advantage of the fact that IYR’s share price is exactly at the sweet spot for our adjusted calendar spread and closing the position. We want to scale back our risk prior to expiration week (our EEM position is still open), and at the price below, we’ll have a 6% profit–not too bad for less than three weeks in a volatile market.
Here’s the order we’re placing this afternoon:
Day limit order
Sell to close 2 IYR August 57 put
Sell to close 2 IYR August 61 put
Buy to close 2 IYR July 57 put
Buy to close 2 IYR July 61 put
for a net credit of $2.65 or better.
Note that the number of contracts above represents our entire position at each strike.