Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA
Option Strategy: calendar put spread
Trade entry date / price: Jan 24 / $159.15
Price at time of post: $156.30
Reasoning: This trade worked out very nicely both in terms of percent gain (60% or more in 1 week!!) and as a hedge against our long Delta positions. As long as DIA stays between 156.30 and 157 by today's close, this position's profitability will improve the closer we get to the end of trading today.
Closing Trade Details:[private_monthly]
STC 2 DIA Feb14 157 puts
BTC -2 DIA JanWk5 157 puts
for a min net credit of $1.85 per contract (day order, limit order). Mid is currently at $1.90. NOTE: you MUST close this trade today.
Max Risk: $230
Max Reward: $250 or 108% (at current volatility level) at $157 by Jan 31
Profit Range: 154 to 159.50 by Jan 31
Suggested Upside stop: [private_monthly]@ $161.75
Suggested Downside stop: @ $156.50
Profit / Loss upon fill: minimum of $140 or 60%
[/private_monthly]
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