Stock / Symbol: Solar City Corp / SCTY
Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Price at trade post: $51.30
Reasoning: Looking at a long term trade on SCTY using the sale of short term calls to generate weekly and monthly income. Fundamentally, SCTY is not great but I do like their business model. Solar City is setting themselves up to be essentially a massive utility company. There is definite risk of SCTY pulling back in the short term but I plan for this to be long term trade of at least 10 to 12 months. The greeks going into this trade are: 37.7 delta, 2.5 theta, and 20.2 vega.
Trade Details:
[private_monthly]
BTO 1 SCTY Jan16 60 call
STO -1 SCTY Nov14 60 call
for a max net debit of $7.75 per contract. The mid is currently at $7.45 (day order, limit order). Try for the mid +0.00 to +0.05. If you're not filled today, it's ok to try again next week.
Requirements:
Cost/Proceeds $750
Option Requirement $0
Total Requirements $750
Estimated Commission $3
[/private_monthly]
Max Risk: $750
Max Reward: $450 or 60% @ [private_monthly]60 [/private_monthly]by Nov 21
Profit Range: between $51.30 and $75.00 by Nov 21
Suggested Downside Stop: NA
Suggested Upside Stop: $65
