Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Original Option Strategy: calendar put spread
Trade entry date / price: Oct 31 / $67
Adjustment: With TNA back to about where we started, we can capture about 60% of our potential profit on our short puts if we buy them back here. I'm also going to add on a call calendar to play a possible upswing in the market and significantly lower the trade's current upside risk. The greeks after the adjustment will be: -14 delta, a - 6.5 theta, and 28 vega. With this adjustment, I'm removing our downside stop and raising our upside stop (see below).
Trade Adjustment Details:[private_monthly]
BTC -2 TNA Nov13 61 puts
at the market. (currently at 0.32)
then,
BTO 2 TNA Dec13 70 calls
STO -2 TNA Nov13 70 calls
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for a max net debit of $2.15 per contract (day order, limit order). The mid is currently at $2.10.
Max Risk: $720 (upped from $380)
Max Reward: unlimited at/under $62 (or) $180 or 25% (at current volatility) @ $70 by Nov 15
Profit Range: $0 to $71 by Nov 15
Suggested Upside stop: @ 70.51
Suggested Downside stop: NA
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