Stock / Symbol: SPDR Dow Jones Industrial Average ETF / DIA;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $178.20;
Reasoning: Putting on a December expiration [private_monthly]iron condor[/private_monthly] here on DIA. This non-directional trade has a delta of -5, a positive theta of 1.6 and a negative vega of -8. The probability of success on this trade is 80%. If DIA trades [private_monthly]down to $171 or up to $183, we'll either stop out of the trade or adjust the position.[/private_monthly].
Trade Details:[private_monthly]
STO -2 DIA Dec15 183 calls
BTO 2 DIA Dec15 184 calls
STO -2 DIA Dec15 171 puts
BTO 2 DIA Dec15 170 puts
for a min net credit of $0.24 per contract (GTC order, limit order). Try to get filled closer to the mid, currently at 0.25. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($48)
Total Requirements $152
Estimated Commission $12
[/private_monthly]
Max Risk: $152
Max Reward: $48 or 32% [private_monthly]between 171 - 183 by 18 Dec
Profit Range: $171 to $183 by 18 Dec
Suggested Downside stop: @ $171
Suggested Upside stop: @ $183
[/private_monthly]
Non-members, click here for access
