This post is restricted to paying subscribers.
Stock / Symbol: Bed Bath & Beyond
Original Strategy: Put Calendar Spread
Trade post date: 17 Aug 2022 / $25
Price at this post: $8.80
Reasoning / Update: Rather than continue to battle this trade, I think it's just best to admit that my downside target of $12 on entry was off... I should have structured for a drop to $8. At this point, even though I missed the target, this trade is actually profitable. So, I'm going to take the small win and move on. Another indicator that I should move on is the current position Delta is over 45... way too positive for an initially negative Delta trade.
Trade Exit Order:
STC 1 BBBY 17Feb23 12 put
BTC 1 BBBY 16Sep22 11 put
For a min net credit of $3.65 per contract (GTC order, limit order). The mid is currently at a credit of $3.70. I was just filled at a credit of $3.67
Analysis:
Max Risk: $350
Current Max Reward: $175 or 50% with BBBY at $11 on Sep 16th
Profit Range: BBBY between $8.40 and $19 on Sep 16th
Commission (round trip): $3.90
Realized Profit / Loss: $18 or 5% (pre commission)
