Yep, all makes sense. One clarification though - I understand not EXERCISING the long June30 puts, but if I am short March30s that are hedged with long March31s, and I am ALSO long June30 puts (with no shorts against them), wouldn't I want to SELL the June30s ASAP if we expect PPS to recover quickly?
I just went long Jun 30 calls and short Jun 30 Puts (got 1.29 each so I'm covered down to 28.71), so being long Jun 30 Puts may work for a little while, but I expect the price dip after the SPO to be moderate at best, if it exists at all.
If it does go low, and I get assigned, I'll keep the shares and replace the Puts with further short Puts at the same strike (putting my synthetic long back together) and go long more shares as well. Any chance to arbitrage in the 28's against the coming buyers is looking really good to me.
>>I am ALSO long June30 puts (with no shorts against them), wouldn't I want to SELL the June30s ASAP if we expect PPS to recover quickly?>>
No, I would short the Mar 30's, then the April's, then the May's, against them. If PPS moves up quickly, short the Mar 31's, then the May's...etc., keeping the Long June 30 as the hedge against your Shorts.