Stock / Symbol: United Airlines / UAL
Option Strategy: Diagonal Call Spread
Trade entry date / price: 04 Jun 2020 / $38.55
Price at this post: $40.55
Update: With UAL trading near the level of our short leg of the trade, we're going to enter in the exit order here to book the win.
Trade exit order:
STC 1 UAL 18 Jun21 35 call
BTC 1 UAL 20 Nov20 41 call
For a min credit of $9.80 per contract (GTC order, limit order). The mid is currently at a credit of $9.55. I have not yet been filled. We should get filled with UAL trading at/over $41.
Analysis:
Adjusted Max Risk: $1,005
Max Reward: $130 or 13% with UAL trading at $41 on Nov 20th
Profit Range: UAL between $37.75 and $51.25 by Nov 20th
Estimated Commission (round trip): $18
Downside stop @ $29.22
Anticipated Profit / Loss upon fill: $48 or 4.8% (pre commission)
