Update # 1 on SKF straddle

Since SKF has moved down, I am adjusting the puts to take some money out of the trade. Rolling down the puts as follows on 4/21/09:

Sell 2 SKF Oct'09 70 Puts @ 26.50
Buy 2 SKF Oct'09 65 Puts @ 23

Net Credit $3.50 per put spread

Play on SKF

SKF has taken quite a beating in the recent rally since March '09. However, as the last 2 days have shown, it won't take a big drop to shoot up SKF above 100. So, in anticipation of a correction, I am trying out a synthetic straddle on SKF. The straddle will be skewed to the upside so that if SKF shoots up, it will give a bigger profit. But in case it moves down, the downside is protected also.

Here is the actual trade placed on 4/20/09:

Buy 100 shares of SKF @ 67.32
Buy 1 Oct'09 65 call @ 22.91
Buy 2 Oct'09 70 puts @ 24.61