Stock / Symbol: SPDR Dow Jones Industrial Average / DIA
Option Strategy: [private_monthly]double diagonal[/private_monthly]
Price at trade entry: $135.18
Price at this adjustment: $130.65
Current Position:[private_monthly]
Long 3 DIA Dec12 139 calls
Long 3 DIA Dec12 133 puts
Short -3 DIA Nov12 138 calls
Short -3 DIA Nov12 134 puts
[/private_monthly]
Reasoning: With DIA piercing through our downside stop of $132.50, we're just going to stop out of the trade here.
Trade Details:[private_monthly]
STC 3 DIA Dec12 139 calls
STC 3 DIA Dec12 133 puts
BTC -3 DIA Nov12 138 calls
BTC -3 DIA Nov12 134 puts
[/private_monthly]
for a min net credit of $0.60 per contract (day order, limit order). Try to get filled closer to the mid, currently at 0.70.
[/private_monthly]
Max Risk: $675
Max Reward: $180 or 26.7% [private_monthly]between $134 and $138 by Nov 16
Profit Range: $132.50 to $139 by Nov 16
Suggested Upside stop: @ $139
Suggested Downside stop: @ $132.50
Profit / Loss upon Fill: ($175) pre-commission
[/private_monthly]
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