Stock / Symbol: Mr Cooper Group / COOP
Strategy: Bear Call Spread
Trade entry date / price: 15 Feb 2022 / $51.10
Price at this post: $49.75
Update / Reasoning: With this position closing in on my target of a 10% return, I'm entering in the good till cancelled exit order here. To be filled soon, COOP will likely need to trade a bit lower, to around $49. The net position Greeks are currently: -13.6 Delta, -2.1 Gamma, 0.7 Theta, and -2.3 Vega.
Trade Exit Order:
BTC 1 COOP 14Apr22 55 call
STC 1 COOP 14Apr22 60 call
For a max net debit of $0.50 per contract (GTC order, limit order). The mid is currently at a debit of $0.55. I have not yet been filled.
Analysis:
Max Risk: $415 / My actual risk: $410
Max Reward: $85 or 20% with COOP under $55 by Apr 14th
Profit Range: COOP under $55.80 by Apr 14th
Estimated Commission (round trip): $2.60
Upside Stop: debit to close is 2x initial credit.
Anticipated Profit / Loss upon fill: $40 or 9.8% (pre commission)
