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: $108.79
Current position:[private_monthly]
Long 2 Apr15 104 puts
Short 2 MarWk1 104 puts
[/private_monthly]
Reasoning: We've already managed to capture about 70% of the premium on the current short options. Going to buy back the last set of puts we sold here. After this adjustment, the Greeks will be: -42.6 delta; -4.3 theta; and +21.7 vega. Obviously don't want to hold a position with negative theta for too long. So, by March Week1 expiration, we'll look to sell some more puts if we haven't yet reached our revised downside target of [private_monthly]104[/private_monthly].
Trade Adjustment Details:[private_monthly]
BTC -2 QQQ MarWk1 104 puts
for a max net debit of $0.05 per contract (GTC order, limit order). The mid is currently at $0.045.
[/private_monthly]
Max Risk: $370 (adjusted up from $272)
Max Reward: unlimited
Profit Range: [private_monthly]at / under 102.25[/private_monthly] by Apr 17th
Suggested Upside stop: NA
Suggested Downside stop: 104
Non-members, click here for access
