Stock / Symbol: American Airlines / AAL
Strategy: Bull Put Spread
Trade post date: 02 Jul 2021 / $21.42
Price at this post: $21.38
Update / Reasoning: With AAL trading over the $20 strike of short put and with this position's options expiring this Friday, this position has reached nearly 77% of its profit potential. I'm going to enter the closing order now to attempt to lock in a 17% return.
Trade Exit Order:
BTC 1 AAL 30Jul21 20 put
STC 1 AAL 30Jul21 18 put
For a max net debit of $0.07 per contract (GTC order, limit order). The mid is currently at a debit of $0.07. I was just filled at $0.07.
Analysis:
Max Risk: $165
Max Reward: $35 or 21% with AAL at/over $20 on Jul 30th
Profit Range: AAL at/over $19.70 at market close on Jul 30th
Commission (round trip): $2.60
Realized Profit / Loss: $28 or 17% (pre commission)
