Stock / Symbol: Trip Advisor / TRIP
Option Strategy: put calendar spread / diagonal call spread
Trade entry date / price: 19 Sep 2019 / $40.85
Price at this post: $39.67
Update / Adjustment: With TRIP trading closer to our target of $41, and 35 days till our long call expires, we're going to take profits here. The Greeks for our position are currently: 44.3 delta, 2.4 theta, and a vega of 4.7. If we don't get filled today, the call we sold will expire worthless, enabling us to keep the entire premium we collected on entry. Then, on Monday, we'll look to close the remaining long 40 strike call if TRIP is trading higher. If TRIP is trading lower, we'll rotate our long call into a lower strike call with significantly more time to expiration.
Closing Trade Order:
STC 1 TRIP 15Nov19 40 call
BTC 1 TRIP 11Oct19 41 call
for a minimum net credit of $2.15 per contract (day order, limit order). I was filled at $2.15 at 08:14am PST.
Max Risk: $195 ($175 + $20 loss to date)
Max Reward: $90 or 46% by Oct 11th with TRIP at $41
Profit Range: TRIP between $39.25 and $44.15 by Oct 11th
Realized Profit / Loss: $20 or 10.2% (pre-commission)
Trade Commissions: $18
