Stock / Symbol: iShares Russell 2000 Index / IWM
Option Strategy: [private_monthly]double calendar[/private_monthly]
Trade entry date / price: Feb 20 / $114.80
Price at this adjustment: $117.65
Current Position:[private_monthly]
Long 3 IWM Apr14 110 puts
Short -3 IWM Mar14 110 puts
Long 1 IWM Apr14 117 call
Short -1 IWM Mar14 117 call[/private_monthly].
Adjustment: upside stop hit so I'm adjusting here to give us some more time in the trade. However, if the market continues to push higher, we'll need to capitulate and close the position. Adjusting by adding to the call calendar.
Trade Adjustment Details:[private_monthly]
BTO 2 IWM Apr14 117 calls
STO -2 IWM Mar14 117 calls
for a max net debit of $0.85 per contract (day order, limit order). The current mid is 0.79. Try for the mid + 0.01. [/private_monthly]
Max Risk: $490 (up form $335)
Max Reward: $320 or 65% (at current volatility level) at[private_monthly] $110 [/private_monthly]by Mar 21
Profit Range: $108 to $118.40 by Mar 21
Suggested Downside stop: @ $110.50
Suggested Upside stop: @ $118.49 (adjusted up from 117.38)
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