Stock / Symbol: Peloton / PTON
Option Strategy: Calendar Put Spread
Trade entry date / price: 18 Jun 2020 / $50.65
Price at this post: $55.65
Reasoning: PTON has blown past our upside stop. Closing out the trade for now. We may re-enter the trade on a confirmed pullback.
Trade Exit Order:
STC 1 PTON 21Aug20 40 put
BTC 1 PTON 2Jul20 40 put
For a min net credit of $1.35 per contract (GTC order, limit order). The mid is currently at a credit of $1.34.
Analysis:
Max Risk: $215
Max Reward: $250 or 116% with PTON at $40 by Jul 2nd
Profit Range: PTON between $34.50 and $48.30 on Jul 2nd
Estimated Commission (round trip): $6
Expected Profit / Loss upon fill: ($80) pre-commission
Target Price: $40
Stop Price: $53.51
