Stock / Symbol: Google / GOOG
Option Strategy: diagonal call spread
Trade entry date / price: Jan 30 / $1140
Price at this post: $1203
Reasoning: For those who didn't close this trade out 2 weeks ago, we've be rewarded with additional gains. However, with our short call ITM, I'm going to book the win here and look to reenter a similar trade on a pullback in GOOG. Including the profit from the initial 1190 call we sold, this trade is up 42% in just over 2 weeks! The current greeks are: -3.75 Delta, -1.50 Theta, and +43 Vega. A clear indicator that it's time take a profit.
Closing Trade Details:
STC 1 GOOG Jan15 10 Mini 1150 call
BTC -1 GOOG FebWk2 10 Mini 1190 call
for a min net credit of $120 per contract (day order, limit order). The mid is currently at $123.50. Try for the mid less $0.75.
Max Risk: $865 (originally $955)
Max Reward: $435 or 50% (at current volatility level) at 1190 by Feb 14
Profit Range: $1140 to $1280 (at current volatility level) by Feb 14
Suggested Downside stop: @ 1145
Suggested Upside stop: @ 1250
Realized profit / loss: $370 / 42.7% upon fill
Non-members, click here for access
