Stock / Symbol: Tesla Motors / TSLA
Option Strategy: [private_monthly]double calendar[/private_monthly]
Price at trade post: $265.50
Reasoning: For TSLA's earnings announcement scheduled for Aug 5th, I'm putting on a [private_monthly]double calendar[/private_monthly] with strikes about 15 - 20 points OTM. The Greeks currently show a delta of 0.01, a positive theta of 6.5 and a vega of 12.8. Please note that we're using weeklies for the short options.
Trade Details:[private_monthly]
BTO 1 TSLA Aug 285 call
STO -1 TSLA AugWk1 285 call
BTO 1 TSLA Aug 250 put
STO -1 TSLA AugWk1 250 put
for a max net debit of $3.50 per contract (day order, limit order). The current mid is 3.30. Try for the mid +0.10. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds: $350
Total Requirements: $350
Estimated Commission: $6
[/private_monthly]
Max Risk: $350
Max Reward: $420 or 120% (at current volatility level) at either[private_monthly] $250 or $285 [/private_monthly]by Aug 7th
Profit Range: [private_monthly]$240 to $300 (at current volatility level) by Aug 7th[private_monthly]
Suggested Downside stop: @ $290
Suggested Upside stop: @ $245
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