Stock / Symbol: Twitter / TWTR
Strategy: Diagonal Put Spread
Trade entry date / price: 14 Apr 2022 / $47.50
Price at this post: $45.47
Update / Reasoning: This position is currently up by around 40%. I'm going to enter in an exit order structured to fill with TWTR trading right around $45. If filled, this will lock in about a 50% return. The current Greeks on this Diagonal Put Spread are: -20.9 Delta, 0.8 Gamma, 3.2 Theta, and 6.4 Vega.
Trade Exit Order:
STC 1 TWTR 15Jul22 40 put
BTC 1 TWTR 29Apr22 35 put
For a min net credit of $2.80 per contract (GTC order, limit order). The mid is currently at a credit of $2.65. I have not yet been filled.
Analysis:
Max Risk: $182
Max Reward: $450 or 240% with TWTR at $35 on Apr 29th
Profit Range: TWTR below $46 by Apr 29th
Estimated Commission (round trip): $2.60
Anticipated Profit / Loss upon fill: $98 or 53.8% (pre commission)
