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Quant Trader
Expert-Level Options for Sophisticated Traders

February 22, 2023

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.

Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.