Stock / Symbol: Amazon.com / AMZN
Option Strategy: put calendar
Price at trade post: $365
Reasoning: just a day trade on AMZN here, looking for some profit taking by the end of the day today. Greeks are: delta of -20, a positive theta of 77 and a positive vega of 34. Note that I'm using weekly options on both legs. Be sure to adhere to the stops (see below).
Trade Details:[private_monthly]
BTO 1 AMZN NovWk4 360 put
STO -1 AMZN OctWk4 360 put
for a max net debit of $8.70 per contract (day order, limit order). Mid is currently at $8.60.
Requirements:
Cost/Proceeds $870
Option Requirement $0
Total Requirements $870
Estimated Commission $3
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Max Risk: $870 Max Reward: $250 or 28% (at current volatility level) at 360 by Oct 25
Suggested Upside stop: [private_monthly]@ $368.50
Suggested Downside stop: @ $357.50
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