This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Draft Kings / DKNG
Strategy: Calendar Call Spread
Trade entry date / price: 03 Nov 2020 / $39.30
Price at this post: $41.97
Update: With DKNG trading higher from our entry point, we're currently up on the trade. DKNG is scheduled to report earnings before market open this coming Friday. Since we're up now, I'd like to see if we can close out this trade for at least a 10% return without having to go through the risk of a disappointing earnings announcement. Our position's Greeks are currently: 24.9 Delta, 3.6 Theta, and 11.2 Vega.
Trade Exit Order:
STC 1 DKNG 15 Oct21 50 call
BTC 1 DKNG 18 Dec20 50 call
For a min net credit of $8.55 per contract (GTC order, limit order). The mid is currently at a credit of $7.95. To get filled, DKNG will likely need to be trading over $44. If we're not filled by this Thursday afternoon, I may recommend that we adjust or cancel this exit order
Analysis:
Max Risk: $755 / My Risk: $735
Max Reward: $650 or 85% with DKNG at $50 at market close on Dec 18th
Profit Range: DKNG between $37.50 and $79 on Dec 18th
Estimated Commission (round trip): $2.60
Suggested Upside Stop at: $56
Suggested Downside Stop at: $34
Anticipated Profit / Loss upon fill: $120 or 16% (pre commission)
