Stock / Symbol: Fed Ex / FDX
Strategy: Bear Call Spread
Trade entry date / price: 08 Sep 2020 / $222.72
Price at this post: $226.22
Update / Reasoning: Despite being wrong about FDX trading down, we're still up on this trade - by about 20% at the moment. As long as FDX closes under $230 by market close tomorrow, we can realize the trade's full 47% profit potential. However, I'd prefer to close this one out today or first thing tomorrow morning to avoid turning a winner into a loser, should FDX miraculously shoot up and close over $230 tomorrow. The Greeks at the moment are : -9.9 Delta, 14.6 Theta and -1.4 Vega. Like always, we're using a GTC order to close this one out.
Trade Exit Details:
BTC 1 FDX 11Sep20 230 call
STC 1 FDX 11Sep20 232.50 call
For a max net debit of $0.25 per contract (GTC order, limit order). The mid is currently at a debit of $0.38 and I have not yet been filled.
Analysis:
Max Risk: $170
Max Reward: $80 or 47% with FDX at/under $230 by Sep 11th
Profit Range: FDX under $230.50 by Sep 11th
Estimated Commission (round trip): $6
Suggested upside stop @ $231.60
Anticipated Profit / Loss upon fill: $55 or 32% (pre commission)
