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Stock / Symbol: Microsoft / MSFT
Strategy: Long Put Butterfly + Long Call Butterfly
Trade entry date / price: 14 Aug 2020 / $208.50
Price at this post: $211.90
Reasoning: With MSFT trading close to our upside max profit price, we're going to close this one out here for a win. At this time, the Greeks on this position are: -23.1 Delta, 23.5 Theta and -6.7 Vega.
Trade Exit Details:
First:
STC 1 MSFT 21Aug20 207.50 call
BTC 2 MSFT 21Aug20 212.50 calls
STC 1 MSFT 21Aug20 217.50 call
For a min net credit of $2.50 per contract (GTC order, limit order). The mid is currently at a credit of $2.58 and I was filled at $2.55
Then:
STC 1 MSFT 21Aug20 212.5 put
BTC 2 MSFT 21Aug20 207.5 puts
STC 1 MSFT 21Aug20 202.5 put
For a min net credit of $1.10 per contract (GTC order, limit order). The mid is currently at a credit of 1.24 and I was filled at $1.22
Analysis:
Max Risk: $315 ($145+$170)
Max Reward: $200 or 63% with MSFT between $208 and $212.25 on Aug 21st
Profit Range: MSFT between $205.75 and $214 by Aug 21st
Estimated Commission (round trip): $24
Upside stop @ $215
Downside stop @ $205
Realized Profit / Loss: $70 or 23% (pre commissions)
