Stock / Symbol: GoPro / GPRO
Strategy: Calendar Call Spread
Trade entry date / price: 03 May 2021 / $11.08
Price at this post: $11.58
Update / Reasoning: GPRO has recovered nicely from its lows about 2 weeks ago and is closing in on my adjusted upside target of $12. So, I'm entering in my exit order here, but not anticipating a fill until the end of next week. with GPRO trading right at around $12. If filled, the profit from this trade will come from the $13 call sold at the onset of the trade. If I'm not filled on this exit order by next Friday, I will look to sell another $12 or $13 strike call to generate additional income from the position. The current Greeks on this position are: 12.2 Delta, 1.2 Theta, and 2.2 Vega.
Trade Exit Order:
STC 1 GPRO 15Oct21 13 call
BTC 1 GPRO 04Jun21 12 call
For a min net credit of $1.30 per contract (GTC order, limit order). The mid is currently at a credit of $1.08.
Analysis:
Max Risk: $230 (increased due to selling $12 strike call against $13 LC)
Max Reward: $30 or 13% with GPRO at $12 on Jun 4th
Profit Range: GPRO between $11.45 and $12.50 at market close on Jun 4th
Estimated Commissions (round trip): $3.25
Downside stop @ $7.00
Upside stop @ $12.25
Anticipated Profit / Loss upon fill: $18 or 7.8% (pre commissions)
