Stock / Symbol: Small Cap 3x ETF / TNA
Strategy: Diagonal Put Spread
Trade entry date / price: 15 Jan 2020 / $80.50
Price at this post: $77.67
Update: TNA is essentially trading at the same level it was upon this position's entry, but the calls we've sold have given us a profit so far. Although I think TNA will trade down to the $70 to $75 range at some point, it's hard to pass up an opportunity to lock in a 40+% return. So, I'm going to exit this trade here and book the win. If you'd like to hold out for a larger gain, I'd recommend setting a firm upside stop at $80 and a firm downside stop at $70.
Trade Exit Order:
STC 1 TNA 19Feb21 75 put
BTC 1 TNA 29Jan21 70 put
For a min net credit of $6.20 per contract (day order, limit order). The mid is currently at a credit of $6.47. I was just filled at $6.50
Analysis:
Max Risk: $500
Max Reward: $450 or 90% with TNA at $70 on Jan 29th
Profit Range: TNA under $82 at market close on Jan 29th
Commission (round trip): $3.90
Take profits at $70 to $75 range
Realized Profit / Loss: $247 or 49% (pre commission)
