Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]calendar spread[/private_monthly];
Price at trade entry: $920
Price at this adjustment: $926
Reasoning: Upside site hit. The trade's greeks are currently : -17 delta, -2 theta, and 62 vega. To adjust, I'm going to add a [private_monthly]940 call [/private_monthly]calendar spread. The addition of the 2nd calendar will adjust the greeks to: 3 delta, -4 theta, and 128 vega.
Trade Adjustment Details:[private_monthly]
BTO 1 RUT Mar13 940 call
STO -1 RUT FebWk4 940 call
for a max net debit of $4.95 per contract. (day order, limit order). The current mid is $4.85. Try for mid plus .05.
Requirements:
Cost/Proceeds $490
Option Requirement $0
Total Requirements $490
Estimated Commission $3
[/private_monthly]
Max Risk: $1200 (up from $715)
Max Reward: $150 or 12% (at current volatility level) [private_monthly] at $900[/private_monthly] by Feb 22[private_monthly]
Profit Range: between $897 and $904 by Feb 22
Suggested Upside stop: @ $945
Suggested Downside stop: @ $890
[/private_monthly]
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