Stock / Symbol: Twitter / TWTR;
Option Strategy: calendar call spread
Trade entry date / price: 1 Apr / $51.00
Price at this adjustment: $29.87
Current Position:[private_monthly]
Long 1 Jan17 40 call
at an effective cost of $9.52 per contract[/private_monthly]
Adjustment: The last call we sold (Aug 42 strike), expired worthless, enabling us to further reduce the cost basis in the trade. We're going to take advantage of today's 8% move up to sell another call against the position. The Greeks after this adjustment will be: 28.2 delta, 0.69 theta, and 11.1 vega.
If you're not currently in this trade, you can enter here by [private_monthly]going long the Jan17 40 call and short the Nov 40 call.[/private_monthly]
Trade Adjustment Details:
[private_monthly]
STO -1 TWTR Nov 40 Call
for a min net credit of $0.32 per contract (GTC order, limit order). The mid is currently $0.30.
[/private_monthly]
Max Risk: $920
Max Reward: $75 or 8% (at current volatility) at $40[/private_monthly] by Nov 20th
Profit Range: $38.65 to $42 by Nov 20th
Suggested Downside Stop: NA
Suggested Upside Stop: $41.50
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