Stock / Symbol: PowerShares QQQ / QQQ
Option Strategy: [private_monthly]double calendar[/private_monthly]
Price at trade post: $68.25
Reasoning: We're putting on a [private_monthly]double calendar here that works in tandem with our double diagonal on DIA. [/private_monthly]This is a delta neutral trade with a slight downside bias (currently at -14.73) with a positive theta of 3.20 and a positive vega of -31. If QQQ either trades up to $70 or down to $65, we'll either stop out of the trade or adjust by [private_monthly]adding another calendar. [/private_monthly]
Trade Details:[private_monthly]
BTO 4 QQQ Dec12 69 calls
STO -4 QQQ Nov12 69 calls
BTO 4 QQQ Dec12 66 puts
STO -4 QQQ Nov12 66 puts
for a max net debit of $1.25 per contract (day order, limit order). The mid is currently at $1.23. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds $500.00
Option Requirement $0
Total Requirements $500
Estimated Commission $24
Max Risk: $500
Max Reward: $120 or 24% between $66 and $69 by Nov 16
Profit Range: $65 to $70 by Nov 16
Suggested Upside stop: @ $70
Suggested Downside stop: @ $65
[/private_monthly]
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