Stock / Symbol: Bank of America / BAC
Option Strategy: [private_monthly] diagonal call spread[/private_monthly]
Trade entry date: Dec 13
Price at trade entry: $10.55
Price at trade exit: $11.43
Current Position:
Long 5 BAC JanWk1 11 calls
Short -4 BAC DecWk4 10 calls
Reasoning: Well, I was wrong about this one. Although it looked like BAC was over bought, having run up nearly 50% since it's summer lows, the stock clearly had more room to the upside as BAC added another 8% in a couple of weeks. This was a low probability trade, which is why I didn't risk very much on it. My mistake was not sticking to my stop at $10.85. Need to close the trade now as the short call expires today.
Closing Trade Details:
STC 5 BAC JanWk1 11 calls at the market
BTC -4 BAC DecWk4 10 calls at the market
Max Risk: $260
Max Reward: $240 or 92% by Dec 28 at/under 10
Realized Profit / Loss upon fill: ($200) pre-commission
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