Trade Exit – SKX Double Diagonal

This post is restricted to paying members. To follow are specific new trade details:

Stock / Symbol: Skechers USA / SKX
Strategy: Double Diagonal Spread
Trade entry date / price : 06 Feb 2020 / $38.15
Price at this post: $43.70

Reasoning: At $43.70, SKX is a bit higher than we want it but we should be able to close it today for a profit.

Trade Details:

STC 1 SKX 21Feb20 42 call
BTC 1 SKX 07Feb20 43 call
STC 1 SKX 21Feb20 34 put
BTC 1 SKX 07Feb20 33 put

For a min net credit of $1.45 per contract (day order, limit order). The mid is currently at a credit of $1.37. I have not yet been filled.

Analysis:

Max Risk: $120
Max Reward: $110 or 83% with SKX trading at $33 by Feb 7th
Profit Range: SKX trading between $29 to $36 and $41 to $46.50 by Feb 7th
Estimated Commission (round trip): $12
Expected Profit / Loss upon fill: $25 or 20.8% (pre commissions)

Positive Theta

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