Stock / Symbol: Duolingo / DUOL
Strategy: Bear Call Spread
Trade entry date / price: 10 Nov 2023 / $209
Price at this post: $217.85
Reasoning: I don't like that DUOL recently found support at its 17 day average. As I've lost conviction in the trade, I'm exiting here for a small loss. At the moment, the net position Greeks are: -8.3 Delta, 0.02 Gamma, 0.3 Theta, and -1.2 Vega.
Trade Exit Order:
BTC 1 DUOL 16Feb24 220 call
STC 1 DUOL 16Feb24 230 call
For a max net debit of $4.40 per contract (GTC order, limit order). The mid is currently at a debit of $4.35. I was just filled at $4.35
Analysis:
Max Risk: $620
Max Reward: $380 or 61% with DUOL under $220 by Feb 16th
Profit Range: DUOL under $223.50 by Feb 16th
Estimated Commission (round trip): $2.60
Upside Stop: $230
Realized Profit / Loss: ($55) or -8.9% (pre commission)
