Stock / Symbol: Verizon / VZ
Strategy: Diagonal Call Spread
Trade entry date / price: 13 Oct 2022 / $36.26
Price at this post: $37.05
Update / Reasoning: With the position already up about 12%, and with VZ set to report earnings this Friday, I'm just going to take profits here. The current net position Greeks on this position are: 34 Delta, -8.5 Gamma, 2.1 Theta, and 12.4 Vega. Note that the long call I'm using doesn't expire until 2024, allowing multiple adjustments if necessary.
Trade Exit Order:
STC 1 VZ 19Jan24 35 call
BTC 1 VZ 4Nov22 39 call
For a min net credit of $4.85 per contract (GTC order, limit order). The mid is currently at a credit of $4.86 and I was just filled at $4.85
Analysis:
My Max Risk: $435
Max Reward: $160 or 37% with VZ at $39 on Nov 4th
Profit Range: VZ between $36.25 and $46.50 by Nov 4th
Estimated Commission (round trip): $2.60
Realized P/L: $50 or 11.5% (pre commissions)
