Stock / Symbol: iShares Russell 2000 Index / IWM
Option Strategy: [private_monthly]double diagonal[/private_monthly]
Price at trade post: $100.75
Reasoning: Putting on a [private_monthly]double diagonal[/private_monthly] on IWM with the long legs expiring on the 4th week of February. The Greeks on this trade are: -0.1 delta, 2.3 theta, and -0.2. We'll look to adjust or exit at each of the short strikes [private_monthly](106 call & 96 put)[/private_monthly].
Trade Details:[private_monthly]
BTO 1 IWM FebWk4 108 call
BTO 1 IWM FebWk4 94 put
STO -1 IWM Feb16 106 call
STO -1 IWM Jan16 96 put
for a min net credit of $0.07 per contract (GTC order, limit order). The current mid is 0.10. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($7)
Total Requirements $187
Estimated Commission $6
[/private_monthly]
Max Risk: $187
Max Reward: $70 or 37% (at current volatility level) at[private_monthly] $96 [/private_monthly]by Feb 19th
Profit Range: $95 to $106.75 by Feb 19th
Suggested Downside stop: @ $96
Suggested Upside stop: @ $106
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