Getting Long Strong Stocks on the Sell-Off Makes Sense: TRV

2014년 5월 15일

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States. Today a trader sold 2080 TRV May 90 Calls that they were long and then bought the June 92.5 Calls. This means that a trader does not want to convert there Deep In the Money Calls into long stock, but they still expect more upside until June expiration. I think that even though TRV has sold off there is more potential upside, so I bought the TRV June 92.5 Calls for $1.00

My Trade: Buying the TRV June 92.5 Calls for $1.00 debit
Risk: $100 per 1 lot
Reward Potential: Unlimited
Targets: Sell 25% at $1.20, Sell 25% at $1.40, Sell 25% at $1.60, Sell 25% at $1.80

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long