Stock / Symbol: PowerShares QQQ / QQQ
Option Strategy: [private_monthly]Double Calendar[/private_monthly]
Trade entry date / price: 20 Jan / $100.82
Price at this adjustment: $108.32
Current position:[private_monthly]
Long 2 Mar15 95 puts
[/private_monthly]
Reasoning: Well, I sure was wrong about the market pulling back this week. Going to close out the long 95 puts and roll into a [private_monthly]104 strike put calendar[/private_monthly]. After this adjustment, the Greeks will be: -33.3 delta; -0.3 theta; and +20.4 vega. Please note, I'm using the Week 1 March options for the short leg.
Trade Adjustment Details:[private_monthly]
STC 2 QQQ Mar15 95 puts @ the market, then
BTO 2 QQQ Apr15 104 puts
STO -2 QQQ MarWk1 104 puts
for a max net debit of $1.10 per contract (day order, limit order). The mid is currently at $1.05. Try for the mid +0.01. If not filled today, ok to try again on Monday.
Max Risk: $360 (adjusted up from $272)
Max Reward: $100 or 28% (at current volatility levels) at [/private_monthly]104[/private_monthly] by Mar 6th
Profit Range: [/private_monthly]103 to 105.40 by Mar 6th
Suggested Upside stop: NA
Suggested Downside stop: 103.25
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