Stock / Symbol: Direxion Small Cap Bear 3x / TZA
Option Strategy: [private_monthly] calendar call spread[/private_monthly];
Price at trade post: $18.52
Reasoning: Putting on a directional trade here as a low risk way to play the negative market reaction to today's Feb meeting. Greeks are: 28 Delta, 3.75 Theta, and 3.4 Vega.
Trade Details:[private_monthly]
BTO 2 TZA Mar14 20 calls
STO -2 TZA FebWk1 20 calls
for a max net debit of $0.90 per contract (day order, limit order). The mid is currently at $0.82.
Requirements:
Cost/Proceeds $180
Option Requirement $0
Total Requirements $180
Estimated Commission $6
[/private_monthly]
Max Risk: $180
Max Reward: $165 or 91% (at current volatility) at $20 by Feb 21
Profit Range: $18.25 to $22.25 by Feb 21
Suggested Upside stop: @ 20.50
Suggested Downside stop: @ 17.30
[/private_monthly]
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