This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Docusign / DOCU
Option Strategy: Broken Wing Butterfly Call Spread
Trade entry date / price: 09 Apr 2020 / $89.30
Price at this post: $101.14
Update: DOCU has reached our price target of $101 today, so we're going to enter in our exit order on the DOCU Broken Wing Butterfly call spread. At the moment, the position is up 54%. We're using a GTC order as it may take a few days to fill.
Trade Exit Details:
STC 1 DOCU 15May20 92.50 call
BTC 2 DOCU 15May20 97.50 calls
STC 1 DOCU 15May20 100 call
For a min net credit of $1.90 per contract (GTC order, limit order). The mid is currently at $1.85.
Analysis:
Max Risk: $120
Max Reward: $330 or 275% with DOCU trading at $97.50 on May 15th
Profit Range: DOCU at/over $93.75 by May 15th
Estimated Commission (round trip): $15
Estimated Profit / Loss upon fill: $70 or 58% (pre-commission)
Suggested upside stop: $105
Suggested downside stop: $64.87
