This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: General Electric / GE
Strategy: Bear Call Spread
Trade post date: 12 Jan 2023
Price at this post: $78.65
Reasoning: GE is up over 30% from its lows in mid December. Also, it's looking like investors are anticipating a very positive earnings announcement by GE on the 24th of this month. So, of course, I'm taking a contrarian approach to GE. On the premise that GE will run into resistance at the 88 - 89 level, I'm looking at a Bear Call spread on GE. I'm looking to exit this position within 10 days, on any pullback to the 75 level for about a 10% return. No matter what, I'll be exiting this trade no later than Jan 23rd, as GE will announce the following morning. The net Greeks on this position will be approximately: -10.4 Delta, -0.4 Gamma, 0.5 Theta, and -3.5 Vega. I'm setting an upside stop at $89
Trade Entry Order:
STO 1 GE 16Jun23 90 call
BTO 1 GE 16Jun23 95 call
For a min net credit of $1.00 per contract (GTC order, limit order). The mid is currently at a credit of $1.10. I was just filled at $1.05
Requirements:
Max Cost/Min Proceeds: ($100)
Margin Requirement: $500
Max Total Requirements: $400
Analysis:
Max Risk: $400
Max Reward: $100 or 25% with GE under $90 on Jun 16th
Profit Range: GE at / under $91 on Jun 16th
Estimated Commission (round trip): $2.60
Upside stop @ $89
