Stock / Symbol: PowerShares QQQ / QQQ
Option Strategy: [private_monthly]Double Calendar[/private_monthly]
Price at trade post: $99.33
Reasoning: Again, looking to capitalize on the very low volatility, I'm going with a [private_monthly]double calendar[/private_monthly] on QQQ to play it. Going with the SepWk2 expiration for the short options. This trade's greeks are: -1.1 Delta, 0 Theta, and 62 Vega.
Trade Details:[private_monthly]
BTO 4 QQQ Oct14 101 calls
STO -4 QQQ SepWk2 101 calls
BTO 4 QQQ Oct14 96 puts
STO -4 QQQ SepWk2 96 puts
for a max net debit of $1.50 per contract (GTC order, limit order). The mid is currently at $1.39. Try for the mid +.03.
Requirements:
Cost/Proceeds $560
Option Requirement $0
Total Requirements $560
Estimated Commission $12
[/private_monthly]
Max Risk: $560
Max Reward: $140 or 25% at [/private_monthly]$96 (at current volatility)[/private_monthly] by Sep 12
Profit Range: [/private_monthly]$95.25 to $97 & $100.50 to $101.25 [/private_monthly]by Sep 12
Suggested Upside stop: @ $101.15
Suggested Downside stop: @ $95.5
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