Stock / Symbol: LYFT / LYFT
Option Strategy: Synthetic Long Spread
Trade entry date / price: 25 Nov 2019 / $48.88
Price at this post: $28.88
Reasoning: This trade has turned out to be a casualty of the COVID-19 market selloff. We're going to close it out and take the loss. However, we will look to enter a new long on either LYFT or UBER soon.
Closing Trade Order:
BTC 1 LYFT 17Apr20 42.5 put
STC 1 LYFT 17Apr20 40 put
For a max net debit of $2.52 per contract (day order, limit order). The mid is currently at a debit of $2.65. I was filled at $2.52.
Analysis:
Adjusted Max Risk: $209 (down from $265)
Max Reward: $43 or 20% with LYFT trading over $42.50 by Apr 17th
Profit Range: LYFT at/over $42.15 (pre commissions) by Apr 17th
Commission (round trip): $9
Realized Profit / Loss: ($209) or -79%
