Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA;
Option Strategy: [private_monthly]double calendar (originally)[/private_monthly];
Trade entry date / price: Feb 13 / $140.20;
Price at this post: $140.20;
Current Position:[private_monthly]
long 4 DIA Apr13 142 calls
short -4 DIA Mar13 142 calls
long 4 DIA Apr13 138 puts
short -4 DIA Mar13 138 puts
long 3 DIA Apr13 135 puts
short -3 DIA Mar13 135 puts
Reasoning: Current greeks are: -29 delta, 11.6 theta, and 109 vega. DIA is right back where it was when when first put this trade on. Time to take profits on the original double calendar (up about 4.5% after commissions) as I want to take off much of this trade's risk should volatility head lower. This adjustment will leave us with the 35 put calendar, which will perk up on any sort of pullback. Lowering the upside stop to $141.50.
Trade Adjustment Details:[private_monthly]
STC 4 DIA Apr13 142 calls
BTC -4 DIA Mar13 142 calls
STC 4 DIA Apr13 138 puts
BTC -4 DIA Mar13 138 puts
for a min net credit of $1.99 per contract (day order, limit order). The mid is currently at $1.97.
Max Risk: $275 (down from $102)
Max Reward: $300 or 109% (at current volatility level) at $135 by Mar 15
Profit Range: $131 to and $138.90 (at current volatility level) by Mar 15
Suggested Upside stop: @ $141.50
Suggested Downside stop: @ $135
[/private_monthly]
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