Stock / Symbol: SodaStream / SODA
Option Strategy: calendar put spread
Trade entry date / price: Jun 12 / $72.50
Price at this post: $71.25
Reasoning: SODA is down just 2% from our entry point but our trade is up about 25%! Current Greeks are: -6.2 Delta, 3.9 Theta, and 9 Vega. I'm going to see if I can book this win early. I'm leaving a lot of potential profit on the table but this stock can move quickly. If the stock trades back up to $73 before we get filled, I'm going to adjust the sell order to exit the trade right then.
Closing Trade Details:
STC 1 SODA Oct13 67.5 Put
BTC -1 SODA Jul13 67.5 Put
for a min net credit of $5.55 per contract (GTC order, limit order). Mid is currently at $5.45, so it'll either take a day or more to get filled or require the stock to drop to $69.
Max Risk: $430
Max Reward: $300 or 69% at $67.5 by Jul 19
Profit Range: $60.50 - $77
Upside Stop: @ 73 (moved down from 78)
Downside Stop: @ 67.50 (moved up from 65.75)
Profit / Loss upon fill: $125 or 29% (pre-commission)
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