Stock / Symbol: United States Oil Fund / USO
Option Strategy: diagonal call spread;[/private_monthly]
Trade entry date / price: Feb 12th / $18.95;
Price at trade close: $19.55;
Current Position:
Long 1 Jan16 15 call
Short -1 Apr15 19 call
at an effective cost of $3.89 per contract
Reasoning: short call is ITM and expiring tomorrow. Going to close the trade here for an 18% return. Pretty good, considering that USO is only up 3% since we put on the trade.
Closing Trade Details:
STC 1 USO Jan16 15 call
BTC -1 USO Apr15 19.00 Call
for a min net credit of $4.60 per contract (day order, limit order). The current mid is $4.65
Max Risk: $389 (down from $424)
Max Reward: $110 or 28% @ 19.0 by Apr 17th
Profit Range: $17.65+ by Apr 17th
Suggested Upside Stop: $21
Suggested Downside Stop: $15
Realized Profit / Loss: $71 or 18.25% return (pre-commission)
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