Stock / Symbol: SPDR Dow Jones Industrial Average / DIA
Option Strategy: [private_monthly]double diagonal[/private_monthly];
Price at trade post: $166.44
Reasoning: Putting on a [private_monthly]Double Diagonal[/private_monthly] on DIA with a -1.5 delta, a 1.5 theta, and a 2.0 vega. If DIA either trades up to [private_monthly]$173 or down to $158[/private_monthly], we'll either exit the trade or adjust the position.
Trade Details:[private_monthly]
BTO 1 DIA Marwk4 173 call
BTO 1 DIA Marwk4 159 put
STO -1 DIA Mar16 172 call
STO -1 DIA Mar16 160 put
for a max net debit of $0.10 per contract (day order, limit order). Try to get filled near the mid, currently at 0.06. If not filled today, ok to try again Monday. I was filled at 0.06 per contract.
Requirements:
Cost/Proceeds $8
Total Requirements $108
Estimated Commission $6
[/private_monthly]
Max Risk: $108
Max Reward: $110 or 101% (at current volatility) [private_monthly] at $160 by Mar 18th[/private_monthly]
Profit Range: $157.75 to $173 by Mar 18th
Suggested Upside stop: @ $173
Suggested Downside stop: @ $158
[/private_monthly]
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