Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: [private_monthly]calendar put spread[/private_monthly];
Price at trade post: $67
Reasoning: Anticipating a market pullback, I'm making a directional play on TNA going down. The greeks on this trade are: -21 delta, a 2.9 theta, and 9.6 vega. If our upside stop is triggered, we'll either exit for a small loss or add another calendar.
Trade Details:[private_monthly]
BTO 2 TNA Dec13 61 puts
STO -2 TNA Nov13 61 puts
[/private_monthly]
for a max net debit of $1.90 per contract (day order, limit order). The mid is currently at $1.85 and I was filled at $1.85. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds $380
Option Requirement $0
Total Requirements $380
Estimated Commission $6
Max Risk: $380
Max Reward: $300 or 78% (at current volatility) @ $61 by Nov 15
Profit Range: $57 to $66 by Nov 15
Suggested Upside stop: @ 69.99
Suggested Downside stop: @ 59.50
[/private_monthly]
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