Stock / Symbol:Nasdaq 100 / NDX
Option Strategy: [private_monthly]bear call spread[/private_monthly]
Price at trade post: $3014.50
Reasoning: With 34 days till Jun expiration, I'm putting on an [private_monthly] bear call spread[/private_monthly] on NDX. We've got an expected deviation of[private_monthly] +/- 122 points between now and May expiration; but with how strong this market has been, I'm not going to sell the 3150's, I'm selling the 3175 calls. [/private_monthly] The trade's greeks are: -2.2 delta, 5.8 theta, and -31 vega. The probability of success on this trade is 92%. If NDX trades [private_monthly]down significantly, I'll consider adding a bull put spread, making the position an iron condor.[/private_monthly]
Trade Details:[private_monthly]
STO -1 NDX Jun13 3175 call
BTO 1 NDX JUn13 3200 call
for a min net credit of $1.25 per contract. (day order, limit order). The current mid is $1.35. If not filled today, it's ok to try again Monday.
Requirements:
Cost/Proceeds ($125)
Option Requirement $2,500
Total Requirements $2,375
Estimated Commission $3
[/private_monthly]
Max Risk: $2,375
Max Reward: $125 or 5.2%[private_monthly] between $0 and $3175[/private_monthly] by Jun 21[private_monthly]
Profit Range: [private_monthly]$0 to $3175 by Jun 21[/private_monthly]
Suggested Upside stop: @ $3056
Suggested Downside stop: NA
[/private_monthly]
Non-members, click here for access
