Stock / Symbol: SPDR Dow Jones Industrial Average ETF / DIA;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $172.85;
Reasoning: Putting on a January expiration [private_monthly]iron condor[/private_monthly] here on DIA. This non-directional trade has a delta of 0.4, a positive theta of 1.8 and a negative vega of -8. The probability of success on this trade is 80%. If DIA trades [private_monthly]down to $164 or up to $181, we'll either stop out of the trade or adjust the position.[/private_monthly].
Trade Details:[private_monthly]
STO -2 DIA Jan16 184 calls
BTO 2 DIA Jan16 186 calls
STO -2 DIA Jan16 161 puts
BTO 2 DIA Jan16 159 puts
for a min net credit of $0.28 per contract (GTC order, limit order). Try to get filled closer to the mid, currently at 0.30. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($56)
Total Requirements $344
Estimated Commission $12
[/private_monthly]
Max Risk: $344
Max Reward: $56 or 16% [private_monthly]between 161 - 184 by 15 Jan
Profit Range: $171 to $183 by 15 Jan
Suggested Downside stop: @ $164
Suggested Upside stop: @ $181
[/private_monthly]
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