This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Splunk / SPLK
Option Strategy: Calendar Put Spread
Trade entry date / price: 22 May 2020 / $183.50
Price at this post: $175
Update / Action: SPLK is pulling back as anticipated. Entering in our sell order now in order to not miss a selling opportunity. For the minimum credit we're going for, it will likely take until June 1st to get filled. The position is currently up about 10%. The current Greeks are: -0.5 Delta, 10.5 Theta and 6.3 Vega.
Closing Trade Details:
STC 1 SPLK 19Jun20 172.5 put
BTC 1 SPLK 05Jun20 172.5 put
For a min net credit of $3.35 per contract (GTC order, limit order). The mid is currently at $2.50.
Analysis:
Max Risk: $225
Max Reward: $300 or 133% with SPLK trading at $172.50 by June 5th
Profit Range: SPLK between $162 and $184 by June 5th
Estimated Commission (round trip): $6
Suggested upside stop: $191.50
Take profits at: $172.50
Estimated Profit / Loss upon fill: $110 or 49% (pre-commission)
