Stock / Symbol: Solar City Corp / SCTY
Option Strategy: calendar call spread;
Trade entry date / price: 7 Nov / $51.30;
Price at this post: $58.65;
Reasoning: With SCTY reporting earnings this afternoon, and with it trading very near to our price target, it's time to book this win and avoid the uncertainty of earnings. The current Greeks are: 14 delta, 31 theta, and 20 vega.
Closing Trade Details:
STC 1 SCTY Jan16 60 call
BTC -1 SCTY Feb16 60 call
for a min net credit of $6.50 per contract. The mid is currently at $6.85 (day order, limit order). Try for the mid -0.05.
Max Risk: $570 (adjusted down from $750 at trade entry)
Max Reward: $300 or 53% @ 60 by 20 Feb
Profit Range: between $54 and $69 by 20 Feb
Suggested Downside Stop: NA
Suggested Upside Stop: $64
Profit / loss upon fill: $123 or 22% (pre-commission)
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