Stock / Symbol: SPDR S&P500 ETF / SPY
Option Strategy: [private_monthly]put calendar spread[/private_monthly]
Price at trade post: $154.50
Reasoning: Putting on a bearish trade on the S&P with a [private_monthly]put calendar[/private_monthly] on SPY. The greeks going into this trade are: -33 delta, 7.7 theta, and 35 vega. Using weeklies on the short puts, with the expectation of writing weekly puts until we reach [private_monthly]150 on SPY.[/private_monthly] I'm setting an upside stop at 156.60.
Trade Details:
[private_monthly]
BTO 2 SPY Jun13 150 puts
STO -2 SPY AprWk4 150 puts
for a max net debit of $2.30 per contract. The mid is currently at $2.22 (day order, limit order). Try for the mid plus 0.01. Note: if you're not filled today, it's ok to retry tomorrow..
Requirements:
Cost/Proceeds $448
Option Requirement $0
Total Requirements $448
Estimated Commission $6
[/private_monthly]
Max Risk: $448
Max Reward: $300 or 167% @ 150 (at current volatility level) by Apr 26
Profit Range: between $145.50 and $154.30 by Apr 26
Suggested Downside Stop @ 150
Suggested Upside Stop @ $156.60
