Stock / Symbol: PowerShares QQQ / QQQ
Option Strategy: [private_monthly]Calendar Put Spread[/private_monthly]
Price at trade post: $67.62
Reasoning: I think that QQQ will trade back down to 66 sometime between now and May expiration. I'm using a put calendar on QQQ to play this premise. I'm selling the Mar13 expiration put and plan on selling the weekly options tiil QQQ prints 66. This trade's greeks are: -205 Delta, 8.2 Theta, and 75 Vega. If QQQ trades over $68.40 or under $64, we'll either adjust or stop out.
Trade Details:[private_monthly]
BTO 8 QQQ May13 66 puts
STO -8 QQQ Mar13 66 puts
for a max net debit of $1.15 per contract (day order, limit order). The mid is currently at $1.07. Try for the mid +.03. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds $865
Option Requirement $0
Total Requirements $865
Estimated Commission $24
[/private_monthly]
Max Risk: $865
Max Reward: $400 or 46% at $66 by Mar 15
Profit Range: $64.50 to $67.55 by Mar 15
Suggested Upside stop: @ $69
Suggested Downside stop: @ $66 (to take profits)
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