Stock / Symbol: GoPro / GPRO
Strategy: Calendar Call Spread / Diagonal Call Spread
Trade entry date / price: 03 May 2021 / $11.08
Trade exit date / price: 03 Jun 2021 / $11.37
Update / Reasoning: My exit order, for a net credit of $1.30 per contact, filled right at market open today. Considering that GPRO failed to come anywhere near my target price of $13, walking away with a 7.8% return in a month's time isn't that bad.
Position Recap:
Long 1 GPRO 15Oct21 13 call
Short 1 GPRO 14May21 13 call
Short 1 GPRO 04Jun21 12 call
Entered an effective net debit of $1.12 per contract and exited for a net credit of $1.30 per contract. This position started out as a Calendar Call Spread, was adjusted mid trade, and finished up as a Diagonal Call spread.
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
Commissions (round trip): $3.25
Downside stop @ $7.00
Upside stop @ $12.25 (lowered from $13 after mid-trade adjustment)
Realized Profit / Loss: $18 or 7.8% (pre commissions)
