Stock / Symbol: SPDR S&P 500 ETF / SPY;
Option Strategy: [private_monthly]double diagonal[/private_monthly];
Price at trade post: $195.45;
Reasoning: Putting on an uneven [private_monthly] double diagonal[/private_monthly] on SPY with March expiring options for the short legs. This trade currently has a delta of -0.4, a positive theta of 2.2 and a positive vega of 1.4. If SPY hits either our upside stop at [private_monthly]203.50[/private_monthly] or downside stop at 183.50, we'll adjust the trade or exit it.
Trade Details:
[private_monthly]
BTO 1 SPY MarWk4 203 call
BTO 1 SPY MarWk4 184 put
STO -1 SPY Mar16 202 call
STO -1 SPY Mar16 186 put
for a max net debit of $0.02 per contract. The mid is currently at a credit of $0.02 (day order, limit order). If not filled today, ok to try again tomorrow. I was filled at a debit of $0.01.
Requirements:
Cost/Proceeds ($1)
Option Requirement $199
Total Requirements $199
Estimated Commission $6
[/private_monthly]
Max Risk: $199
Max Reward: $130 or 65% by Mar 18th [private_monthly]at $186 (at current volatility)
Profit Range: Between $183.50 and $203.50 by Mar 18th (at current volatility)
Suggested Upside Stop @ $203.50
Suggested Downside Stop @ $183.50
[/private_monthly]
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