Stock / Symbol: Twitter / TWTR
Strategy: Diagonal Put Spread
Trade entry date / price: 19 Apr 2021 / $69.51
Price at this post: $67.90
Update / Reasoning: Yesterday, TWTR traded down below its 50 day average, to $66.77 before recovering right back at the 50 day average. In case that was it for the downward move, I'm preparing to exit this position with TWTR trading at $67.95 or higher. If this revised stop is hit, I'll attempt to exit for a small profit. I got filled on the entry order at a debit of $1.85 at 6:33am PST yesterday.
Trade Exit Order: When TWTR trades at / over $67.95
STC 1 TWTR 18Jun21 60 put
BTC 1 TWTR 30Apr21 55 put
For a min net credit of $1.95 per contract (GTC order, limit order). The mid is currently at a credit of $2.13.
Analysis:
Max Risk: $185
Max Reward: $500 or 270% with TWTR at $55 on Apr 30th
Profit Range: TWTR below $68.50 by Apr 30th
Estimated Commission (round trip): $2.60
Suggested Stop @ $67.95
Anticipated Profit / Loss upon fill: $10 or 5% (pre commission)
