We hold the Sep 84 (DAVIF) -May 84 calendar spread four times for 3.45 and a September 76 put purchased for 1.49 on the opening last Thursday. Our maximum theoretical gain would come with the underlying stock trading around $84 when the May calls that we are short expire on May 15. The theoretical gain for the position would be about $779, based on a 5.77 price for the September calls, a price of zero for the May calls, and a price of zero for the May 76 put. If you work the numbers, you'll see that this position yields a theoretical profit over a very wide range of prices. I've included a snapshot of an option calculator that shows how I estimated the value of the September 84 calls as of May 15 with the underlying trading for $84.
DIA
DIA – Diamonds (Last:79.23)
– Posted in: Current Touts Free Rick's PicksWe hold the Sep 84-May 84 calendar spread four times for 3.45. It is a conservative bullish play, but there is growing downside exposure that we should take steps to neutralize. Accordingly, I'll suggest bidding
DIA – Diamonds (Last:81.23)
– Posted in: Current Touts Free Rick's PicksWith our Dow target at ____ in mind, I recommended buying the _______ call spread yesterday via a mid-morning post under Intraday Notes. Specifically, I suggested paying no more than 3.45 for the spread four times
