Stock / Symbol: Peloton / PTON
Option Strategy: Calendar Put Spread
Trade entry date / price: 22 Oct 2020 / $122.50
Price at this post: $119.34
Update / Reasoning: With PTON seemingly holding at its 17 day average support level, we're going to exit the trade here for a roughly 12% profit. The current Greeks on this position are: -10.8 Delta, 12.3 Theta and 13.1 Vega.
Trade Exit Order:
STC 1 PTON 15Jan21 100 put
BTC 1 PTON 06Nov20 100 put
For a min net credit of $6.15 per contract (GTC order, limit order). The mid is currently at a credit of $6.20 and I was just filled at $6.25.
Analysis:
Max Risk: $550
Max Reward: $700 or 127% with PTON at $100 on Nov 6th
Profit Range: PTON between $34.50 and $48.30 on Jul 2nd
Commission (round trip): $2.60
Target Price: $100
Upside Stop: $134.60
Realized Profit / Loss: $85 or 15% (pre commission)
