IRA – Potash Diagonal – Profit $170
December 15th, 2009, 9:38 am EST. Posted under Individual Retirement Account (IRA) by ThetaTrader.
Post Tags: , CLOSED, POT
12/15/2009 – ThetaOptions IRA Portfolio – DEC/JAN Potash Diagonal Closed - Profit $170
Our Potash Diagonal has changed to “Positive” delta this morning on a position we’re extremely bearish on. Therefore, we’re losing money now as we continue to hold the spread. As a result we’ve decided to close the trade this morning, even though we have a high Theta value on the spread and it is possible that Potash could finish right at 120 by OpEx day; we feel it is not worth risking our high profit margin at this point.
Profit Calculation:
1) -0.40 [opened spread] = $0.40 debit
2) +2.10 [closed spread] = $1.70 credit
Risk-Reward: $170/$500 = 34% Profit in two weeks
Filled Order:
Sell To Close: (1) Dec/Jan 120/125 Call Side Diagonal – 2.10 credit
Position: None
