Stock / Symbol: PowerShares QQQ / QQQ
Option Strategy: [private_monthly]Double Calendar[/private_monthly]
Price at trade post: $100.82
Reasoning: Putting on a [private_monthly]double calendar[/private_monthly] on QQQ using the FebWk1 expiration for the short options. This trade's greeks are: 6.1 Delta, 3.5 Theta, and 33 Vega. If QQQ is still trading at it's current price by FebWk1 expiration, we'll look to roll into the Feb15 expiration options for the short legs of the position.
Trade Details:[private_monthly]
BTO 2 QQQ Mar15 106 calls
STO -2 QQQ FebWk1 106 calls
BTO 2 QQQ Mar15 95 puts
STO -2 QQQ FebWk1 95 puts
for a max net debit of $1.75 per contract (GTC order, limit order). The mid is currently at $1.68. Try for the mid +.02.
Cost/Proceeds: $350
Option Requirement: $0
Total Requirements: $350
Estimated Commission: $12
[/private_monthly]
Max Risk: $350
Max Reward: $190 or 54% at [/private_monthly]$95 (at current volatility)[/private_monthly] by Feb 6
Profit Range: [/private_monthly]$92.25 to $99.30 & $102.75 to $107.75 [/private_monthly]by Feb 6
Suggested Upside stop: @ $107
Suggested Downside stop: @ $93.75
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