Stock / Symbol: Amazon.com / AMZN
Option Strategy: double calendar
Trade entry date / price: Oct 23 / $326
Price at this post: $365
Reasoning: The damn thing went up 39 (instead of the estimated 22), putting us on the wrong side of our short 350 call. We could wait and hope for AMZN to pullback 10 points but I'd rather not risk it going even higher.
Closing Trade Details:
STC 1 AMZN Nov13 350 call
BTC -1 AMZN OctWk4 350 call
STC 1 AMZN Nov13 305 put
BTC -1 AMZN OctWk4 305 put
for a min net credit of $5.10 per contract (day order, limit order). Mid is currently at $5.15.
Max Risk: $460
Max Reward: $700 or 150% (at current volatility level) at 350 by Oct 25
Suggested Upside stop: @ $350
Suggested Downside stop: @ $305
Profit / Loss upon fill: $50 or 10.8% (pre-commission)
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