This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Tilray / TLRY
Strategy: Diagonal Call Spread
Trade entry date / price: 01 Feb 2021 / $19
Price at this post: $25.77
Update / Reasoning: Just 2 days into the trade and TLRY is already up 35+% from where it was upon the position entry. Going to enter an exit order now, to attempt to capture a quick 20 - 22% profit. As usual, I'm using a GTC order as it may take anywhere from a few hours to a few days to fill.
The current Greeks on this Diagonal Call Spread are: 10 Delta, 4.3 Theta, and 1.0 Vega. Note that the move from a 39 Delta to a 10 Delta + a 6.8 Theta to a 4.3. Theta is also indicting that its getting close to where profits should be taken.
Trade Exit Order:
STC 1 TLRY 20Jan23 10 call
BTC 1 TLRY 19Feb21 20 call
For a min net credit of $9.98 per contract (GTC order, limit order). The mid is currently at a credit of $10.05 and I was just filled at $9.98.
Analysis:
Max Risk: $825
Current Max Reward: $250 or 30% with TLRY at $20 on Feb 19th
Profit Range: TLRY over $15.85 by Feb 19th
Estimated Commission (round trip): $2.60
Downside Stop at: $4.40
Anticipated Profit / Loss upon fill: $185 or 23% (pre commission)
