Stock / Symbol: Peloton / PTON
Option Strategy: Broken Wing Butterfly Call Spread
Trade entry date / price : 28 May 2020 / $41.50
Price at this post: $50.10
Update / Reasoning: Our premise was incorrect that PTON would trade lower from our entry point. As the position is in the money, we need to close out the position and take the loss.
Trade Exit Details:
STC 1 PTON 19Jun20 36 call
BTC 3 PTON 19Jun20 37 calls
STC 2 PTON 19Jun20 38 calls
For a max net debit of $1.00 per contract (GTC order, limit order). The mid is currently at a debit of $0.95.
Analysis:
Max Risk: $40
Max Reward: $140 or 350% with PTON trading at $37 by Jun 19th
Profit Range: PTON under $37.50 by Jun 19th
Estimated Commission (round trip): $18
Estimated Profit / Loss upon fill: ($40) pre-commission
