Stock / Symbol: PowerShares QQQ / QQQ
Option Strategy: [private_monthly]double diagonal[/private_monthly]
Price at trade post: $63.73
Reasoning: With 31 days to Dec option expiration, we're putting on a [private_monthly]double diagonal on QQQ. [/private_monthly]This is a delta neutral trade with a slight upside bias (currently at 11) with a positive theta of 5.4 and a negative vega of -19.58. If QQQ either trades up to $66.50 or down to $61.25, we'll either stop out of the trade or adjust it.
Trade Details:[private_monthly]
BTO 4 QQQ DecWk4 70 calls
STO -4 QQQ Dec12 67 calls
BTO 4 QQQ DecWk4 58 puts
STO -4 QQQ Dec12 61 puts
for a min net credit of $0.34 per contract (day order, limit order). The mid is currently at $0.36. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds ($146)
Option Requirement $1200
Total Requirements $1064
Estimated Commission $24
Max Risk: $1064
Max Reward: $146 or 13.72% between $61 and $67 by Dec 21
Profit Range: $60.65 to $67.25 by Dec 21
Suggested Upside stop: @ $66.50
Suggested Downside stop: @ $61.25
[/private_monthly]
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