Stock / Symbol: Micron / MU
Strategy: Diagonal Call Spread
Trade entry date / price: 07 Aug 2020 / $48.65
Price at this post: $50.68
Reasoning: With MU trading near our short call strike price / our price target, we're going to enter a closing order to book the win. Don't forget that, in addition to being up on the current position , we also got to keep the entire $1.35 per contract premium from the initial 49 strike call we sold upon entering the trade At the moment, the Greeks on this position are: 21.9 Delta, 11.0 Theta and 14.6 Vega.
Trade Exit Order:
STC 1 MU 18Jun21 47.5 call
BTC 1 MU 18Sep20 51 call
For a min net credit of $9.45 per contract (GTC order, limit order). The mid is currently at a credit of $9.47 and I was filled at $9.45
Analysis:
Max Risk: $705 (down from $775 on entry)
Max Reward: $275 or 39% with MU at $51 by Sep 18th
Profit Range: MU between $46. and $62 by Sep 18th
Commission (round trip): $3.25
Downside stop @ $42
Realized Profit / Loss: $253 or 36% (pre commissions)
