Stock / Symbol: Lemonade / LMND
Strategy: Double Calendar
Trade entry date / price: 25 Mar 2021 / $89.89
Price at this post: $95.13
Update / Reasoning: I'm attempting to close out this trade today for a modest 11% gain.
Trade Exit Details:
STC 1 LMND 16Apr21 100 call
BTC 1 LMND 1Apr21 100 call
STC 1 LMND 16Apr21 80 put
BTC 1 LMND 1Apr21 80 put
For a min net credit of $4.85 per contract (day order, limit order). The mid is currently at a credit of $4.25. To get filled, LMND will likely need to be trading at/over $97.
Analysis:
Max Risk: $435
Max Reward: $225 or 51% with LMND at $100 at market close on Apr 1st
Profit Range: LMND between $78 - $85 & $92.25 - $105 at market close on Apr 1st
Estimated Commission (round trip): $5.20
Upside stop @ $100
Downside stop @ $80
Anticipated Profit / Loss upon fill: $50 or 11.5% (pre commission)
