Stock / Symbol: Twitter / TWTR
Price at trade post: $51
Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Reasoning: Putting on a [private_monthly]calendar call spread[/private_monthly] on TWTR with the idea of generating monthly or weekly income while we wait for TWTR to hit [private_monthly]$55[/private_monthly]. The Greeks going into this trade are: 14.3 delta, 3.7 theta, and 12.6 vega.
Trade Details:
[private_monthly]
BTO 1 TWTR Jan16 55 Call
STO 1 TWTR MayWk1 55 Call
for a max net debit of $4.45 per contract (day order, limit order). The mid is currently 4.37. Try for the mid +0.04. If not filled today, it's ok to try again tomorrow.
Requirements:
Cost/Proceeds $440
Option Requirement $0
Total Requirements $440.00
Estimated Commission $3
[/private_monthly]
Max Risk: $440
Max Reward: $340 or 77% (at current volatility) at [private_monthly] $55[/private_monthly] by May 1st
Profit Range: between [private_monthly] 48.50 & 65.50 by May 1st
Suggested Downside Stop: $42.50
Suggested Upside Stop: $57
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