Stock / Symbol: Peloton / PTON
Strategy: Bull Put Spread
Trade entry date / price: 10 Mar 2021 / $112.70
Price at this post: $107.65
Update / Reasoning: With time working in our favor, our PTON Bull But spread is currently profitable. If the stock holds this current level by market open on Monday, there's a decent chance of exiting the trade early in the week for about a 9% return. And, since I'm now a bit concerned about PTON dipping under $100, I'm entering a GTC exit order here to see if I can capture that 9% return early next week. Since entry, the Greeks for this trade have gone from: 4.0 to 4.4 Delta, 2.5 to 3.8 Theta, and -1.3 to -1.0 Vega.
Trade Exit Order:
BTC 1 PTON 26Mar21 95 put
STC 1 PTON 26Mar21 90 put
For a max net debit of $0.15 per contract (GTC order, limit order). The mid is currently at a debit of $0.28 To get filled at market open on Monday, PTON will likely need to be trading at/over $109.
Analysis:
Max Risk: $445
Max Reward: $55 or 12% with PTON at/over $95 on Mar 26th
Profit Range: PTON at/over $94.50 at market close on Mar 26th
Commission (round trip): $2.60
Downside Stop at: $95
Anticipated Profit / Loss upon fill: $40 or 9% (pre commission)
