Stock / Symbol: iShares Russell 2000 Index / IWM
Option Strategy: [private_monthly]double diagonal[/private_monthly]
Trade entry date / price: 14 Dec / $111.06
Price at this adjustment: $114.
Reasoning: Going to roll the short put in order to capture the profit on it. This adjustment will re-balance the Delta, increase the trade's Theta, and reduce the trade's Vega. The Greeks after this adjustment are: 1.1 Delta, 4.9 Theta, and 11.1 Vega.
Trade Adjustment Details:[private_monthly]
BTC 4 IWM Jan16 107 puts
STO -4 IWM Jan16 108 puts
for a min net credit of $0.05 per contract (day order, limit order). The current mid is 0.10.
[/private_monthly]
Max Risk: $1210 (increased from $840)
Max Reward: $280 or 23% (at current volatility level) at[private_monthly] $108 and $117[/private_monthly]by 15 Jan
Profit Range: $107 to $118.25 by 15 Jan
Suggested Downside stop: @ $108
Suggested Upside stop: @ $117
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