NaughtyPines

TRADE IDEA: FAS AUG 18TH 18/28.5 SHORT STRANGLE

AMEX:FAS   DIREXION DAILY FINANCIAL BULL 3X SHARES
Truth be told, I'm not a huge of fan of leveraged instruments, but when a $23 underlying has the potential to yield a $100 or more worth of credit, I'll briefly overlook the warts these instruments have as an "investment" tool ... .

Here are the metrics for the play:

Probability of Profit: 77%
P50: 81%
Max Profit: $127/contract at the mid (this is off hours pricing; we'll have to see whether that's possible at NY open)
Max Loss/Buying Power Effect: Undefined/$232/contract (estimated/off hours)
Break Evens: 16.73/29.77

Notes: I'll look to get a fill for anything north of $100/contract, given the price of the underlying. As usual, I'll look to take this off at 50% max profit.
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