Stock / Symbol: Johnson & Johnson / JNJ
Strategy: Calendar Call Spread
Trade entry date / price: 01 Oct 2020 / $148.15
Price at this post: $148.92
Reasoning: With JNJ closing in on our price target of $150, we're going to set our exit order. As usual, we're using a GTC order to close the trade, as it likely will not fill until tomorrow.
Trade Exit Details:
STC 1 JNJ 18 Dec20 150 call
BTC 1 JNJ 09 Oct20 150 call
For a min net credit of $5.15 per contract (GTC order, limit order). The mid is currently at a credit of $4.97.
Analysis:
Max Risk: $455 / Actual Risk: $438
Max Reward: $130 or 28% with JNJ at $150 at market close on Oct 9th
Profit Range: JNJ between $146.75 and $153.30 on Oct 9th
Estimated Commission (round trip): $2.60
Suggested Upside Stop at: $151
Suggested Downside Stop at: $144
Anticipated Profit / Loss upon fill: $77 or 17% (pre commission)
