Stock / Symbol: Small Cap Bull 3x / TNA
Option Strategy: Diagonal Call Spread, adjusted to a Calendar Call Spread
Trade entry date / price: 28 Feb 2020 / $47.60
Trade exit date / price: 12 Oct 2020 / $39.78
Recap: This was likely our longest lasting trade to date. A little over 7 months ago, we started with a Diagonal Call Spread (long 50 / short 55) for a debit of $7.20 per contract. At one point, our max risk was $1,300 (after some adjustments), with TNA trading at just $13.50. By today, we've managed to exit the trade for a substantial gain and all with the underlying stock trading 16.5% down from our original entry point.
Analysis:
Adjusted Max Risk: ($495) aka "zero risk"
Max Reward: $1050 with TNA at $40 by Oct 16th
Profit Range: TNA at any price
Commission (21 contracts x $0.65/contract): $13.65
Take Profits / Close Position @ $40 to 42 range
Realized Profit / Loss: $947 or 73% (pre commission)
