Stock / Symbol: Facebook / FB
Strategy: Bear Call Spread
Trade entry date / price: 12 Apr 2021 / $310.15
Trade exit date / price: 19 Apr 2021 / $305.19
Recap: My exit order was filled yesterday at 6:56am PST, locking in a 10% return on this Bear Call Spread trade. As noted yesterday, if you haven't yet exited the trade, it looks like you can realize this trade's full profit potential by allowing the position to expire worthless by market close on Friday. If so, I'd recommend setting an upside stop for the position at $310.15.
Position Review:
Short 1 FB 23Apr21 325 call
Long 1 FB 23Apr21 330 call
In for a net credit of $0.65 per contract and out for a net debit of $0.15 per contract.
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
Realized Profit / Loss: $45 or 10% (pre commission)
