Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA;
Opening Option Strategy: [private_monthly]put calendar[/private_monthly];
Option Strategy after adjustment: [private_monthly]double calendar[/private_monthly];
Price at trade post: $155.75;
Reasoning: Upside stop of $155.75 triggered, adding the aforementioned [private_monthly]call calendar, making a double calendar trade.[/private_monthly] The adjusted Greeks are: delta of -22, a positive theta of 9.4 and a positive vega of 87. Note the adjusted stop levels below.
Trade Adjustment Details:[private_monthly]
BTO 4 DIA Sep13 157 calls
STO -4 DIA Aug13 157 calls
for a max net debit of $1.10 per contract (day order, limit order). The mid is currently at $0.98.
[/private_monthly]
Max Risk: $892 (adjusted up from $492)
Max Reward: $260 or 29% (at current volatility level) at $152 or by Aug 16
Profit Range: 151 to 157.50 by Aug 16
Suggested Upside stop: [private_monthly]@ $157.75
Suggested Downside stop: @ $150.50
[/private_monthly]
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