Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA
Option Strategy: [private_monthly]double calendar[/private_monthly]
Trade entry date / price: May 17 / $152.60
Price at this post: $152.30
Remaining Position:
long 1 DIA Jul13 154 calls
long 2 DIA Jul13 151 puts
short -2 DIA MayWk4 151 puts
Reasoning: Currently at the sweet spot on the risk curve so going to take profits here. After commissions, this trade will net us about 3% in under a week.
Closing Trade Details:
STC 2 DIA Jul13 151 puts
BTC -2 DIA MayWk4 151 puts
at the net bid price or better. The current mid is 2.38
then,
STC 1 DIA Jul13 154 call
at the bid or better. The current mid is 1.85
Max Risk: $575 (includes realized loss of $25 from yesterday's adjustment)
Max Reward: $125 or 21% (at current volatility level) at $151 by May 24 / unlimited over $156.55
Profit Range: 150.00 to 153.75 and at 156.55+ by May 24 /
Suggested Upside stop: NA
Suggested Downside stop: @ $150.50
Profit / Loss upon fill: $17.5 or 3% (after commissions)
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