Stock / Symbol: Skechers / SKE
Option Strategy: bear call spread
Trade entry date / price: 22 July 2019 / $39.25
Price at exit: $38.38
Reasoning: With our Bear Call Spread at about 85% of the trade's max profit & with the possibility that today's Fed action could rise all boats, we're going to take profits here. Current Greeks are: delta of -4.5, a negative theta of -0.1 and a negative vega of -0.2.
Closing Details:
BTC 2 SKX 2Aug19 40 calls
STC 2 SKX 2Aug19 41.5 calls
for a max net debit of $0.05 per contract. The mid is currently at a credit of $0.03 (GTC order, limit order).
Analysis:
Max Risk: $230
Max Reward: $70 or 30% by Aug 2nd with SKX at/under $40
Profit Range: SKX At/under $40.30 by Aug 2nd
Suggested Upside Stop @ $40.15
Profit / Loss upon fill: $60 or 26% (pre-commission)
Trade cost: $12
