Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: [private_monthly]put tree[/private_monthly];
Price at trade post: $47.77;
Reasoning: I'd like to get long TNA but at a better price than it's currently trading at. This [private_monthly]put tree[/private_monthly] on TNA will commit us to go long the stock at $42, a 12% discount from here. If TNA doesn't pullback by June expiration, we make a little money too. The greeks on this trade are: 8.8 delta, a 5.7 theta, and -1.5 vega. If we get the stock put to us, we'll convert to a covered call strategy.
Trade Details:[private_monthly]
BTO 1 TNA Jun13 44 put
STO -1 TNA Jun13 43 put
STO -1 TNA Jun13 42 put
for a min net credit of $0.22 per contract (day order, limit order). The mid is currently at $0.26. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds ($22)
Option Requirement $4300
Total Requirements $4278
Estimated Commission $4.5
Max Risk: $4177
Max Reward: $122 or 2.9% between $42.01 to $43 by Jun 21
Profit Range: $41+ by Jun 21
Suggested Upside stop: NA
Suggested Downside stop: NA
[/private_monthly]
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