Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA
Original Option Strategy: double calendar
Adjusted Strategy: diagonal put spread
Trade entry date / price: Sep 13 / $153.60
Price at this post: $152.00
Current Position:[private_monthly]
Long 2 Nov13 148 puts
Short 2 Sep13Wk4 152 puts
[/private_monthly]
Adjustment: Rolling the short 152 puts over to Oct Week1 expiration puts. With this adjustment, our position Greeks will roughly be: -12 delta; 6 theta, and 25 vega. This adjustment lowers our downside risk from $1,045 to approximately $500 (factoring in the legs of the position we've closed) and allows us to lower the downside stop to [private_monthly]$150. I'm also lowering the upside stop to where DIA was on this trade's entry at $153.60.[/private_monthly]
Trade Adjustment Details:[private_monthly]
BTC -2 DIA SepWk4 152 puts
STO -2 DIA OctWk1 150 puts
for a min net credit of $0.38 per contract (day order, limit order) The mid is currently at $0.24
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Max Risk: $500 to the downside / $150 to the upside (originally $510 at trade entry)
Max Reward: $220 or 44% (at current volatility level) at $150 by Oct 4
Profit Range: 148.50 to 153 by Oct 4
Suggested Upside stop: [private_monthly]@ $153.60
Suggested Downside stop: @ $150
[/private_monthly]
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