Stock / Symbol: Facebook / FB
Strategy: Bear Call Spread
Trade entry date / price: 12 Apr 2021 / $310.15
Price at this post: $305.75
Update / Reasoning: While FB hasn't pulled back nearly to the degree I anticipated, the trade structure is providing us with a profit so far. Although we could likely let the position expire worthless this Friday for the full profit, I'm going to see if I can exit this trade early and take off the risk. The Greeks on this position, from entry to now, are: -6.1 to - 3.1 Delta, 3.9 to 5.6 Theta, and -3.3 to -1.7 Vega.
Trade Exit Order:
BTC 1 FB 23Apr21 325 call
STC 1 FB 23Apr21 330 call
For a max net debit of $0.15 per contract (GTC order, limit order). The mid is currently at a debit of $0.17. I have not yet been filled.
Analysis:
Max Risk: $440
Max Reward at .60 credit: $60 or 13.6% with FB under $325 (or) by Apr 23rd
Profit Range: FB at/under $324.50 at market close on Apr 23rd
Estimated Commission (round trip): $2.60
Suggested Stop: $325
Anticipated Profit / Loss upon fill: $45 or 10% (pre commission)
