Stock / Symbol: SodaStream / SODA
Price at trade post: $72.50
Option Strategy: [private_monthly]calendar put spread[/private_monthly]
Reasoning: Great company, just expecting a bit of a pullback in SODA. Using a [private_monthly]put calendar[/private_monthly] with the following Greeks: -5.6 Delta, 3.0 Theta, and 8.3 Vega. The longer it takes for SODA to get to our downside stop of $65.75, the more we'll make. Setting an stop @ 78.
Trade Details:
[private_monthly]
BTO 1 SODA Oct13 67.5 Put
STO -1 SODA Jul13 67.5 Put
for a max net debit of $4.40 per contract (day order, limit order). Mid is currently at $4.25. Ok to try again tomorrow if not filled.
Requirements:
Cost/Proceeds $440
Option Requirement $0.00
Total Requirements $440
Estimated Commission $3
[/private_monthly]
Max Risk: $440
Max Reward: $300 or 68% at $67.5 by Jul 19
Profit Range: $60.50 - $77
Upside Stop: @ 78
Downside Stop: @ 65.75
