We hold two June 65 calls for 0.84 against three June 62 puts purchased Friday for 0.92. With a total of 4.44 at risk, this position will make money above 66.50 or below 59.75 at expiration. We have five weeks to play with it, perhaps by turning it into a less-risky butterfly, but for now do nothing further. It may also be possible to exit with a profit before expiration if the QQQs move precipitously. _______ UPDATE (May 15, 1:14 a.m. EDT): On a good-till-canceled basis, offer three June 58 puts short for 1.20. This is stretching, but you never know. _______ UPDATE (May 18, 1:55 a.m. EDT): Let’s stretch a little farther, raising the offer on the short puts to 2.10, day order. You should sell them 1:1 against June 62 puts already held.
