Stock / Symbol: iShares Russell 2000 Index / IWM;
Option Strategy: [private_monthly]double calendar[/private_monthly];
Price at trade post: $103.70;
Reasoning: Putting on a [private_monthly]double calendar[/private_monthly] on IWM with the long legs expiring on the 4th week of March. The Greeks on this trade are: -1.6 delta, 0.9 theta, and -3 vega. We'll look to adjust or exit at either [private_monthly]98.50 or 106.50 [/private_monthly].
Trade Details:[private_monthly]
BTO 1 IWM MarWk4 105.5 call
BTO 1 IWM MarWk4 100.5 put
STO -1 IWM Mar16 105.5 call
STO -1 IWM Mar16 100.5 put
for a max net debit of $0.50 per contract (day order, limit order). The current mid is 0.47. If not filled today, ok to try again tomorrow. I was filled at $0.50.
Requirements:
Cost/Proceeds $50
Total Requirements $50
Estimated Commission $6
[/private_monthly]
Max Risk: $50
Max Reward: $70 or 140% (at current volatility level) at[private_monthly] $100.5 [/private_monthly]by Mar 18th
Profit Range: $98.50 to $106.75 by Mar 18th
Suggested Downside stop: @ $98.50
Suggested Upside stop: @ $106.50
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