Ultra Oil & Gas Proshares (DIG) established nice support over the last few weeks. The low is at $22.65 from 10/10 with two subsequent tests just above that level. On 10/29, DIG gapped up slightly higher therefore leaving 30.50 as the target to fill. The trade is to sell half of the position here (described below) and then the remaining position once DIG has hit $30.50 or less. That way we still have some exposure if DIG moves up from here. The initial margin requirement per contract is $325. So at the minimum, the full position will require about $650 initial and about $480 cash required(after receiving the premium).
As the chart below shows, there is support at about $24. That is one of the reasons for selling the 24 strike. A breach of $24 will be our technical stop loss.