Stock / Symbol: Tesla Motors / TSLA
Option Strategy: [private_monthly]double calendar[/private_monthly]
Trade entry date / price: Jul 7 / $265.50
Price at this post: $264.00
Reasoning: With TSLA barely moving today (down 0.88%) and with volatility slightly up, this trade should be up today but it's not. At this price, the trade's risk graph tells us the trade should be up $270 by Wednesday (day of earnings announcement) but, based on the fact that the trade profit is down today, I just don't trust it. So, while we could theoretically hold out for an 80% gain or better, I'm going to take the 15% profit here (based on my fill at $3.25). The Greeks currently show a delta of 1.78, a positive theta of 99.5 and a vega of 21.6.
Closing Trade Details:
STC 1 TSLA Aug 285 call
BTC -1 TSLA AugWk1 285 call
STC 1 TSLA Aug 250 put
BTC -1 TSLA AugWk1 250 put
for a min net credit of $3.80 per contract (GTC order, limit order). The current mid is 3.82.
Max Risk: $325
Max Reward: $750 or 230% (at current volatility level) at either[private_monthly] $250 or $285 [/private_monthly]by Aug 7th
Profit Range: [private_monthly]$240 to $300 (at current volatility level) by Aug 7th[private_monthly]
Suggested Downside stop: @ $290
Suggested Upside stop: @ $245
Profit / Loss upon fill: $55 or 16.9%
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