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We are going to establish the long position here on FSLR. It is a primary extension fade trade. The trade consists of January 100.00 calls. The option profile play looks like such (approximated):
Option Profile
Capital Required 41,866
Draw Down at Tier 20 -14,553
Draw Down at Tier 20 (%) -37%
Profit Range 1,155 to 18,488
Stop loss 16.5K, Stop at 73.00
Entries are as follows:
129.12
121.41
114.70
108.86
103.78
99.37
95.52
92.18
89.27
86.74
84.53
82.62
80.95
79.50
78.24
77.14
76.19
75.36
74.63
74.00
If you have open incline fade trades (compiling puts) you can subtract the price allocation for that trade from the price allocation of this trade. The sum is the amount required to support both trades.