Stock / Symbol: SPDR Dow Jones Industrial Average / DIA
Option Strategy: double calendar;
Trade entry date / price: Oct 22nd / $171.76;
Price a this adjustment: $178.60;
Current Position:
Long 1 DIA Dec15 168 put
Short 1 DIA Nov15 168 put
Long 1 DIA Nov15 177.5 call
at an effective cost of $1.60 per contract
Reasoning: With less than 30 days to expiration on our long put, closing out the trade here for a small gain.
Closing Trade Details:
STC 1 DIA Dec15 168 put
BTC -1 DIA Nov15 168 put
for a min net credit of $0.53 per contract (day order, limit order). The current mid is $0.57
then,
STC 1 DIA Nov15 177.5 call
for a min credit of $1.10 per contract (day order, limit order). The current mid is $1.20.
Max Risk: $160 (Adjusted down from $385)
Max Reward: $205 or 128% (at current volatility) at $168 by Nov 20th
Profit Range: $162.75 to $173.50 by Nov 20th
Suggested Upside stop: NA
Suggested Downside stop: @ $168
Realized Profit/Loss upon fill: $14 or 9% (pre-commission)
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