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: $106.40;
Current position:[private_monthly]
Long 2 Apr15 104 puts
[/private_monthly]
Reasoning: With the market down today, it's a good time to sell another round of puts against our position. Selling the Mar Wk2 expiring options. After this adjustment, the Greeks will be: -43.0 delta; 5.3 theta; and +20.9 vega. If we don't reach our downside target of [private_monthly]104[/private_monthly] by this Friday, we'll likely look to roll the short puts into the Mar15 expiring puts.
Trade Adjustment Details:[private_monthly]
STO -2 QQQ MarWk2 104 puts
for a min credit of $0.15 per contract (GTC order, limit order). The mid is currently at $0.13.
[/private_monthly]
Max Risk: $348 (adjusted down from $370)
Max Reward: $110 or 32% (at current volatility levels) at [private_monthly] $104[/private_monthly] by Mar 13th
Profit Range: [private_monthly]between $102.60 and $105.35[/private_monthly] by Mar 13th
Suggested Upside stop: NA
Suggested Downside stop: 104
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