Stock / Symbol: Alternative Harvest / MJ
Option Strategy: Diagonal Call Spread
Trade entry date / price: 04 Jun 2020 / $14.00
Trade exit date / price: 19 Nov 2020 / $13.37
Recap: Our exit order was filled today at 11:37am PST.
Position Review:
Long 2 MJ 15Jan21 12 calls
Short 2 MJ 20Nov20 14 calls
Accounting for the numerous calls sold as this trade progressed, we entered the final position for an effective net debit of $1.455 per contract and exited at a net credit of $1.70 per contract.
Analysis:
Adjusted Max Risk: $340
Max Reward: $150 or 44% with MJ trading at $14 by Nov 20th
Profit Range: MJ at/over under $12.95 by Nov 20th
Commission (round trip): $7.15
Take profits @ $15
Downside stop @ $9
Realized Profit / Loss: $49 or 14% (pre commission)
