Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: [private_monthly]double calendar spread[/private_monthly];
Price at trade post: $75.72
Reasoning: Putting on a non directional trade here on TNA but with a -7 Delta, it has a slight negative bias. The greeks on this trade are: -7 delta, a 10.5 theta, and 15.5 vega. Please note that we're using weekly options for the short strikes. If our upside stop is triggered, we'll take profits on the call calendar and play for a pullback. If our downside stop is triggered, we'll take profits on the put calendar and play for a market rebound.
Trade Details:[private_monthly]
BTO 1 TNA Jan14 77 call
STO -1 TNA DecWk1 77 call
BTO 1 TNA Jan14 72 put
STO -1 TNA DecWk1 72 put
for a max net debit of $6.25 per contract (day order, limit order). The mid is currently at $6.15.
Requirements:
Cost/Proceeds $625
Option Requirement $0
Total Requirements $625
Estimated Commission $6
[/private_monthly]
Max Risk: $635
Max Reward: $65 or 10% (at current volatility) between 72 and 77 by Dec 6[/private_monthly]
Profit Range: $71.50 to $78 by Dec 6
Suggested Upside stop: @ 77.25
Suggested Downside stop: @ 71.49
[/private_monthly]
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