Stock / Symbol: Alibaba / BABA
Strategy: Bull Put Spread / Iron Butterfly / Diagonal Call Spread
Trade entry date / price: 30 Nov 2021 / $130
Trade exit date / price: 08 Jun 2022 / $119.28
Update: My exit order filled on Wed, June 8th @ 11:46am PST for a credit of $5.15 per contract. Considering current market conditions and just how far underwater this trade had been, I'm actually quite happy to have been able to exit this week for a modest loss.
Closing Position Recap:
Long 2 BABA 20Jan23 180 calls
Factoring in the initial bull put spread and adjustments in the position to an iron butterfly, then diagonal call spread, the effective cost basis of the long 180 calls was $5.72 per contract. I exited the remaining position at a credit of $5.15 per contract, netting a loss of $0.57 per contract
Analysis:
Adjusted Max Risk: $1195
Profit Range: BABA between at/over $186 on 20Jan 2023
Commission (round trip): $9.10
Realized Profit / Loss upon fill: ($114) or -9.5% (pre commission)
