Stock / Symbol: CSX Corp / CSX
Option Strategy: Calendar Call Spread
Trade entry date: 17 Jan 2020
Price at this post: $76.60
Reasoning: Even though CSX is only up 10 cents from our entry point, our Calendar Spread has performed nicely. We're going to take profits here. The position's current Greeks are: 33.8 Delta, 1.6 Theta and 11.2 Vega.
Trade Details:
BTO 1 CSX 20Mar20 77.5 call
STO 1 CSX 24Jan20 77.5 call
For a min net credit of $1.85 per contract (day order, limit order). The mid is currently at a credit of $1.92. I was filled at $1.90.
Analysis:
Max Risk: $142
Max Reward: $70 or 49% with CSX trading at $77.50 by Jan 24th
Profit Range: CSX between $76.15 and $79 by Jan 24
Realized Profit / Loss: $48 or 33.8% (pre commissions)
Commission (round trip): $6
Target Price: $77.50
Suggested downside stop @ $74.30
Suggested upside stop @ $77.90
