Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: [private_monthly]calendar put spread[/private_monthly];
Price at trade post: $59
Reasoning: Making a relatively low risk, high reward, non directional (but with downside bias) play on TNA. The greeks on this trade are: -10.7 delta, a 3.3 theta, and 10.3 vega. If our upside stop is triggered, we'll either exit for a small loss or add another calendar.
Trade Details:[private_monthly]
BTO 2 TNA Oct13 55 puts
STO -2 TNA Aug13 55 puts
for a max net debit of $3.05 per contract (day order, limit order). The mid is currently at $2.95. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds $600
Option Requirement $0
Total Requirements $600
Estimated Commission $6
Max Risk: $600
Max Reward: $370 or 61% (at current volatility) @ $55 by Aug 16
Profit Range: $50.50 to $61 by Aug 16
Suggested Upside stop: @ 62
Suggested Downside stop: @ 54.50
[/private_monthly]
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