Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA;
Option Strategy: double calendar;
Trade entry date / price: Jul 26 / $155
Price at trade post: $150.80
Reasoning: Original 152 strike put calendar turned out to be the right call. Unfortunately, the Jul 31 adjustment of adding the call calendar hurt us when DIA pulled back under 152. Short options expire today, closing the trade.
Closing Trade Details:
STC 4 DIA Sep13 152 puts
STC 4 DIA Sep13 157 calls
BTC -4 DIA Aug13 152 puts
BTC -4 DIA Aug13 157 calls
for a min net credit of $1.75 per contract (day order, limit order). The mid is currently at $1.89. I was filled at $1.95
Max Risk: $892 (adjusted up from $492)
Max Reward: $260 or 29% (at current volatility level) at $152 or by Aug 16
Profit Range: 151 to 157.50 by Aug 16
Suggested Upside stop: [private_monthly]@ $157.75
Suggested Downside stop: @ $150.50
Realized Profit / Loss: ($108) (pre-commission)
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