Stock / Symbol: NIO Limited / NIO
Strategy: Calendar Call Spread
Trade entry date / price: 16 Dec 2020 / $44.84
Price at this post: $47.71
Update: With NIO trading up and getting closer to the low end of our price target ($49 to $51), I'm going to enter the GTC exit order now. The order likely won't fill unless NIO reaches $49, or we get later into the week / over to early next week. The current Greeks on this position are: 7.5 Delta, 7.7 Theta, and 8.2 Vega.
Exit Order Details:
STC 1 NIO 21May21 47 call
BTC 1 NIO 31Dec20 47 call
For a min net credit of $10.35 per contract (GTC order, limit order). The mid is currently at a credit of $10.27.
Analysis:
Max Risk: $895
Max Reward: $290 or 32% with NIO at $47 at market close on Dec 31st
Profit Range: NIO between $41.50 and $57on Dec 31st
Estimated Commission (round trip): $2.60
Downside Stop at: $39.50
Take Profits at: $49 to $51 range
Anticipated Profit / Loss upon fill: $147 or 16.5% (pre commission)
