Double Boeing Diagonal
Published on May 29, 2007
Published on May 29, 2007
Boeing (BA) recently broke-out (bullish set-up) and I am looking for an income trade that can benefit from new base as well as benefit from the upward movement.
Here is an example of a double diagonal trade:
This trade is:
Though this is a theta and vega play, this trade can easily absorb upto 7% drop in volatility. This is quite delta netural with a mild bullish bias, and hence will slightly benefit from the upward movement. $95 should provide strong support and hence the range is wider on the higher side vs the lower one.
Profitable trading, OptionPundit
Disclosure: This is not part of the OP Newsletter for July income trade. But I will track it to closure here.
As of June 1 closing, this has resulted in $22 profit on $435 investment/per spread.
That is 5% profit.
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