Stock / Symbol: Direxion Small Cap Bull 3x / TNA;
Option Strategy: [private_monthly]double calendar spread[/private_monthly];
Price at trade post: $70.50
Position:[private_monthly]
Long 1 TNA Jan14 77 call
Short -1 TNA DecWk1 77 call
Long 1 TNA Jan14 72 put
Short -1 TNA DecWk1 72 put
[/private_monthly]
Reasoning: Downside stop hit. Closing out the put calendar portion of the trade. Current greeks are: 41 delta, 10 theta, and 15.5 vega. After this adjustment, the position greeks will be: 28 delta, -1.25 theta, and 8 vega. Now, we're playing for a market rebound.
Trade Adjustment: [private_monthly]
STC 1 TNA Jan14 72 put
BTC -1 TNA DecWk1 72 put
for a min net credit of $2.90 per contract (day order, limit order). The mid is currently at $3.05.
Max Risk: $310 (adjusted down from $635)
Max Reward: $200 or 31% (at current volatility) @ 77 by Dec 6[/private_monthly]
Profit Range: $74 to $80.50 by Dec 6
Suggested Upside stop: @ 77.51
Suggested Downside stop: NA
[/private_monthly]
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