Stock Symbol: FaceBook / FB;
Option Strategy: diagonal call spread;
Trade entry date / price: Feb 26th / $80.65;
Price at trade exit: $84.35
Current Position:
Long 1 FB Jan16 80 call
Short -1 FB Mar15 82.5 call
Reasoning: The short call is well ITM and we've nearly hit our upside stop. Going to close out the trade here for a 10% return. We'll look to re-enter the trade in Facebook on a pullback.
Closing Trade Details:
STC 1 FB Jan16 80 call
BTC -1 FB Mar15 82.5 call
for a min net credit of $9.00 per contract (day order / limit order).
Max Risk: $820
Max Reward: $145 or 18% (at current volatility level) [private_monthly]at 82.50[/private_monthly] by March 20th
Profit Range: $79.75 - $86.70 by March 27th
Suggested upside stop: @ $84.50
Suggested downside stop: @ $70
Realized / Profit Loss upon fill: $80 or 10% (pre-commission)
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