We got filled late last Friday to close out this trade. To follow is a recap of the trade:
Stock / Symbol: Nike / NKE
Option Strategy: double diagonal spread
Trade entry date / price: May 17 / $85.22
Trade exit date / price: May 24 / $82.28
Recap: After 6 days of trading, we were able to exit this double diagonal, with NKE trading near our downside target of $82, for a 6% gain.
Position Details:
Long 1 NKE 19Jul2019 85 call
Long 1 NKE 19Jul2019 85 put
Short 1 NKE 24May2019 88 call
Short 1 NKE 24May2019 82 put
Opened at a debit of $6.55 per contract and closed for a credit of $6.95 per contract.
Max Risk: $655
Max Reward: $68 or 10.3% by May 24th with NKE at $82
Profit Range: NKE between $81.25 to $89.45 by May 24th
Adjusted Downside Stop @ $81.99
Suggested Upside Stop @ $88.00
Realized Profit / Loss @ trade exit: $40 or 6.1% (not including commissions)
