Stock / Symbol: Wells Fargo / WFC
Strategy: Diagonal Call Spread
Trade post date: 04 Sep 2020 / $24.68
Price at this post: $28.45
Update / Reasoning: With WFC trading above this position's short leg strike, and our position's Delta now negative, we're going to close the trade here for net gain of around 17%. The current Greeks on this position are: -10.1 Delta, 2.2 Theta and 9.2 Vega.
Trade Exit Order:
STC 1 WFC 21Jan22 25 call
BTC 1 WFC 04Dec20 27 call
For a min net credit of $4.55 per contract (GTC order, limit order). The mid is currently at a credit of $4.55 and I was just filled at $4.55
Analysis:
Max Risk: $405
Max Reward: $145 or 35% with WFC at $27.00 on Dec 4th
Profit Range: WFC over $24.55 on Dec 4th
Estimated Commission (round trip): $4.55
Suggested downside stop @ $20.75
Realized Profit / Loss: $70 or 17% (pre commission)
