Stock / Symbol: Micron Technology
Strategy: Vertical Call Spread
Trade entry date / price: 02 Jul 2021 / $79.62
Trade exit date / price: 14 Jul 2021 / $78.95
Recap: The GTC exit order filled 5 minutes into trading yesterday for a credit of $2.80. This yielded a 12% return from the Vertical Call Spread on MU. Thanks to the position structuring, we had a winning trade on a long Delta position, even with the underlying stock falling from where it was upon entry
Position Review:
Long 1 MU 23Jul21 73 call
Short 1 MU 23Jul21 76 call
In at a net debit of $2.50 per contract on Jul 2nd & out at a net credit of $2.80 per contract on Jul 14th.
Analysis:
Max Risk: $255 / My Risk: $250
Max Reward: $45 or 17.6% with MU at/over $76 on Jul 23rd
Profit Range: MU at/over $75.60 at market close on Jul 23rd
Estimated Commission (round trip): $2.60
Downside Stop @ $76
Realized Profit / Loss: $30 or 12% (pre commission)
