Stock / Symbol: SPDR S&P500 ETF / SPY
Option Strategy: [private_monthly]put calendar spread[/private_monthly]
Price at trade post: $200.20
Reasoning: Looking to take advantage of the low volatility, I'm putting on a [private_monthly]put calendar[/private_monthly] on SPY. The greeks going into this trade are: -29.4 delta, -0.1 theta, and 31.7 vega. Using weeklies on the short puts, with the expectation of writing additional weekly puts until we reach the strike price on SPY.
Trade Details:
[private_monthly]
BTO 2 SPY Oct14 195 puts
STO -2 SPY SepWk2 195 puts
for a max net debit of $1.65 per contract. The mid is currently at $1.54 (GTC order, limit order). Try for the mid plus 0.01.
Requirements:
Cost/Proceeds $310
Option Requirement $0
Total Requirements $310
Estimated Commission $6
[/private_monthly]
Max Risk: $310
Max Reward: $300 or 97% @ [private_monthly]195 (at current volatility level) [/private_monthly]by Sep 12
Profit Range: between $191 and $199 by Sep 12
Suggested Downside Stop @ 193.50
Suggested Upside Stop @ $202.50
