Stock / Symbol:Nasdaq 100 / NDX
Option Strategy: [private_monthly]bear call spread[/private_monthly] ;
Price at trade post: $3350 ;
Reasoning: I'm putting on a [private_monthly] bear call spread[/private_monthly] on NDX for November options expiration. The trade's greeks are: -2.44 delta, 6.5 theta, and -35 vega. If we get a pullback in the markets, I'll look to add a[private_monthly] bull put spread, morphing the trade into an iron condor[/private_monthly]. Setting a stop at 3400, at which point we'll either adjust or exit.
Trade Details:[private_monthly]
STO -1 NDX Nov13 3500 call
BTO 1 NDX Nov13 3525 call
for a min net credit of $1.15 per contract. (day order, limit order). The current mid is $1.20. If not filled today, it's ok to try again Monday.
Requirements:
Cost/Proceeds ($115)
Option Requirement $2,500
Total Requirements $2,385
Estimated Commission $6
[/private_monthly]
Max Risk: $2,385
Max Reward: $115 or 4.8%
Profit Range: [private_monthly]$0 to $3500 by Nov 15[/private_monthly]
Suggested Upside stop: @ $3400
[/private_monthly]
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