Stock / Symbol: iRobot Corp / IRBT
Option Strategy: Calendar Call spread
Trade entry date / price: 22 Oct 2019 / $55.00
Trade exit date / price: 1 Nov 2019 / $48.15
Recap: This IRBT trade was one of those occasional low probability but low risk, high reward trades we put on. At a 1 to 10 risk to reward ratio, we can lose on 4 out of 5 of these trades and still end up with a 120% return. This trade on IRBT was one that fell on the side of probability, and expired worthless yesterday.
Position Details:
Long 1 IRBT 1Nov19 64 calls
Short 1 IRBT 25Oct19 64 calls
for a net debit of $0.25 per contract, total cost of $25.
Analysis:
Max Risk: $25
Max Reward: $250 or 1000% by Oct 25th with IRBT at $64
Profit Range: IRBT between $54 and $74 by Sep 20th
Realized Profit / Loss: ($25) or -100% (pre-commissions)
Trade cost (round trip): $6
