Stock / Symbol: QuantumScape / QS
Strategy: Vertical Call Spread
Trade entry date / price: 10 Jun 2021 / $29.79
Price at this post: $29.56
Update / Reasoning: With QS holding above $25 and with the position closing in on its expiration date, we should be able to close the position soon for about a 16% return. Note that as long as QS is trading over $25 by July 16th, you could hold out till then to realize the trade's full profit potential of a 39% return.
Trade Exit Order:
STC 2 QS 16Jul21 22.5 calls
BTC 2 QS 16Jul21 25 calls
For a min net credit of $2.10 per contract (GTC order, limit order). The mid is currently at a credit of $1.95. I have not yet been filled.
Analysis:
Max Risk: $360
Max Reward: $140 or 39% with QS at/over $25 on Jul 16th
Profit Range: QS at/over $25 at market close on Jul 16th
Estimated Commission (round trip): $2.60
Downside Stop at: $24.99
Anticipated Profit / Loss upon fill: $60 or 16.7% (pre commission)
