This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Nasdaq ETF / QQQ
Strategy: Diagonal Put Spread
Trade entry date / price: 03 May 2022 / $319.45
Price at this post: $307.75
Update / Reasoning: With QQQ down about 4% from where it was on entry into this position, my target return of 25% is coming into focus. So, I'm going to see if I can close this trade out here for a quick 20 to 25% return. The current net position Greeks are: -10.1 Delta, -0.8 Gamma, 9.3 Theta, and 35.0 Vega.
Trade Exit Order:
STC 1 QQQ 19Aug22 260 put
BTC 1 QQQ 20May22 265 put
For a min net credit of $7.00 per contract (GTC order, limit order). The mid is currently at a credit of $7.00. In order to get filled, QQQ will likely need to trade down to the 305 level.
Analysis:
Max Risk: $1000
Max Reward: $1000 or 100% with QQQ at $265 on May 20th
Profit Range: QQQ between $238 and $313 at market close on May 20th
Estimated Commission (round trip): $2.60
Upside stop @ $141
Anticipated Profit / Loss upon fill: $200 or 20% (pre commission)
