Stock / Symbol: Slack Technologies / WORK
Strategy: Diagonal Call Spread
Trade entry date / price: 14 Aug 2020 / $28.35
Trade exit date / price: 06 Oct 2020 / $29.01
Recap: Our exit order filled today for a 15% return.
Position Review:
Long 1 WORK 18Jun21 28 call - in @ $6.65 debit, out @ $6.20 credit
Short 1 WORK 18Sep20 31 call - in @ $1.42 credit (expired worthless)
Short 1 WORK 16Oct20 30 call - in @ $0.35 credit, out @ $0.55 debit
For a net credit of $0.77 per contract.
Analysis:
Max Risk: $500 (reduced from $530)
Max Reward: $190 or 38% with WORK at $30 by Oct 16th
Profit Range: WORK between $27.30 and $35.90 by Oct 16th
Suggested Downside Stop: $21.54
Commission (round trip): $3.25
Realized Profit / Loss: $77 or 15% (pre commission)
