Stock / Symbol: Spdr DOW Jones Industrial Avg ETF / DIA
Option Strategy: [private_monthly]long call[/private_monthly]
Price at trade post: $138.32
Reasoning: I'm adding this position to smooth out the greeks on our open positions . Our current greeks on the overall position pegged to the SPY are: -129 Delta, 17.8 Theta, and -55 Vega. Our current open risk on all positions is $3,900 with a max reward of $563 or 14.4% The addition of this trade will mostly effect the Delta, raising it to -65, which is better. The adjusted Theta will be 15 and the new Vega will be -45. This switches our max risk to $4300 and max reward to $600 or 13.9% by Feb 15. Once the market starts pulling back, I'll take this position back off.
Trade Details:[private_monthly]
BTO 1 DIA Feb13 135 call
for a max net debit of $3.80 per contract (day order, limit order). The mid is currently at $3.75.
Requirements:
Cost/Proceeds $380
Option Requirement $0
Total Requirements $380
Estimated Commission $1.5
[/private_monthly]
Max Risk: $380
Max Reward: unlimited
Profit Range: $138.80 + by Feb 13
Suggested Upside stop: NA
Suggested Downside stop: @ $137
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