Stock / Symbol: First Solar / FSLR
Option Strategy: Synthetic Long Spread
Trade entry date / price: 15 Nov 2019 / $53.48
Price at this post: $55.05
Reasoning: Going to take advantage of FSLR's quick bump up in price and take profits. Also, while we're up now on the long call, at this same price the call would be worthless by the Dec 6 expiration. The position's Greeks are currently: 90.5 Delta, -4.8 Theta and 4.9 Vega. At your own discretion, you could decide to just close the long call now and let the put spread expire worthless with FSLR trading at/over $51.50 by Dec 6th to realize additional gains on this trade.
Closing Trade Details:
First:
STC 1 FSLR 6Dec2019 56.5 call
For a min net credit of $0.85 per contract (GTC order, limit order). The mid is currently at $0.85. I was filled at $0.85
Then, once filled on the first order:
BTC 1 FSLR 6Dec2019 51.5 put
STC 1 FSLR 6Dec2019 48.5 put
For a max net debit of $0.29 per contract (GTC order, limit order). The mid is currently at $0.32.
Analysis:
Max Risk: $296
Max Reward: unlimited with FSLR trading over $56.50 by Dec 6th
Profit Range: FSLR at/over $51.50 (pre commissions) by Dec 6th
Profit / Loss upon fill: $60 or 20.3% (pre commissions)
Estimated Commission (round trip): $9
