Stock / Symbol: Workhorse / WKHS
Strategy: Calendar Call Spread
Trade entry date / price: 09 Nov 2020 / $18.88
Price at this post: $20.99
Reasoning: With WKHS moving up in price, I'd like to get our exit order in now, to fill with WKHS trading at/near our price target of $22. As usual, we're using a GTC order to close the position. The current Greeks are: 33.4 Delta, 8.5 Theta, and 4.3 Vega.
Trade Exit Order:
STC 1 WKHS 16 Apr21 22 call
BTC 1 WKHS 20 Nov20 22 call
For a min net credit of $5.30 per contract (GTC order, limit order). The mid is currently at a credit of $5.25. To get filled, WKHS will most likely need to be trading between $21 and $23.
Analysis:
Max Risk: $435
Max Reward: $195 or 45% with WKHS at $22 at market close on Nov 20th
Profit Range: WKHS between $18.80 and $28.50 on Nov 20th
Estimated Commission (round trip): $2.60
Suggested Downside Stop at: $14.65
Anticipated Profit / Loss upon fill: $105 or 24.7% (pre commission)
