Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: double calendar;
Trade entry date / price: Mar 18 / $88.30;
Price at this post: $88.10;
Reasoning: Including the profit we realized last week on the short MarWk4 84 put, our trade is now up just over 15% in a week with essentially no net change in the underlying price. Entering order to close out the joint call and put calendar here for a nice, quick win. Using a GTC order as it may take until tomorrow to get filled.
Closing Trade Details:
STC 1 TNA May13 84 put
BTC -1 TNA MarWk5 84 put
STC 1 TNA May13 91 call
BTC -1 TNA MarWk5 91 call
For a min net credit of $8.40 per contract (GTC, limit order). Try for the mid -.05. Current mid is at a $8.45 per contract.
Max Risk: $720
Max Reward: $160 or 22% (at current volatility level) between $84 and $91 by Mar 29
Profit Range: 82.50 to 92.75 by Mar 29
Suggested Upside stop: @ $91.75
Suggested Downside stop: @ $84
Realized Profit / Loss upon fill: $120 or 16.6% (pre-commission)
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