Stock / Symbol: Salesforce.com / CRM
Option Strategy: Diagonal Call Spread + Protective Put Spread
Trade post date: 31 May 2022 / $163.45
Price at this post: $180.50
Reasoning: CRM reported good earnings yesterday afternoon and the market responded very favorably. With the position currently up about 50%, I'm just going to close the position out here for a quick win. However, I will leave the bear put spread on as it's lost most of it's value already. Should CRM pullback, I may be able to sell the put spread for a better price than where it as at the moment. The current Greeks are: 19.0 Delta, -1.0 Gamma, 7.6 Theta, and 27.1 Vega.
Trade Exit Order:
STC 1 CRM 16Sep22 185 call
BTC 1 CRM 17Jun22 190 call
For a min net debit of $11.35 per contract (GTC order, limit order). The mid is current at a credit of 11.50 and I was just filled at $11.50
Analysis:
Posted Max Risk: $785 / My Max Risk: $755
Max Reward: Approx $850 or 108% with CRM trading at $190 by Jun 17th
Profit Range: CRM between $170 and and $230 by Jun 17th
Estimated Commission (round trip): $5.20
Suggested upside stop: $200
Adjusted downside stop: $180
Realized Profit / Loss upon fill: $395 or 52% (pre commission)
