Cabot Options Institute Quant Trader – Alert (DIA)
Dow Jones ETF (DIA)
Just 12 days ago we added a bear call spread in DIA. The recent decline has given us the opportunity to take some nice profits off the table. Yes, we could hold on to the trade for the next 30 days to try and make an additional $0.17, but the risk/reward just doesn’t make sense. Given the pop in IV recently, it would serve us better to take off the trade, lock in some profits and look for other opportunities.
The Trade
Simultaneously:
Buy to close DIA March 24, 2023, 355 call strike
Sell to close DIA March 24, 2023, 360 call strike for a total of $0.17 (As always, the price of the spread will vary, so please adjust accordingly.)
As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.