Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: [private_monthly]bull put spread[/private_monthly];
Price at trade post: $54.60
Reasoning: With TNA trading near its 50 day moving average, and down over 10% from its recent highs, going to put on a bullish trade. I am however taking the downside standard deviation calculations into consideration for setting the short strike. The greeks on this trade are: 15 delta, a 2.5 theta, and -3.3 vega. As I'd be happy to own the stock at the short strike price, I may elect to allow some or all of the contracts to assign if they're ITM by Sep expiration. This trade has an 80% probability of success.
Trade Details:[private_monthly]
STO -2 TNA Sep13 45 puts
BTO 2 TNA Sep13 40 puts
for a min net credit of $0.50 per contract (day order, limit order). The mid is currently at $0.49. If not filled today, it's ok to try again Monday.
Requirements:
Cost/Proceeds ($100)
Option Requirement $900
Total Requirements $900
Estimated Commission $6
Max Risk: $900
Max Reward: $100 or 11% at or over $45 by Sep 20
Profit Range: $44.60 + by Sep 20
Suggested Upside stop: NA
Suggested Downside stop: @ 41.80
[/private_monthly]
Non-members, click here for access
