Trade Adjustment – BP Calendar Call Spread

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

Stock / Symbol: BP PLC / BP
Strategy: Calendar Call Spread
Trade entry date / price: 10 Mar 2020 / $25.90
Price at this post: $18.90

Reasoning: Going to add a long 25 strike call to the position to lower the break even point from BP trading at $32.40, down to $30.70. Upon fill, this trade's Greeks will be approximately: 55.5 Delta, 11.0 Theta and 20.8 Vega.

Current Position:

Long 2 BP 21Jan22 30 calls
Short 2 BP 27Mar20 30 calls

At a cost of $2.38 per contract

Trade Adjustment Details:

BTO 1 BP 21Jan22 25 call

For a max net debit of $2.25 per contract (GTC, limit order). The mid is currently at a debit of $2.25 and I was filled at $2.25

Analysis:

Max Risk: $476
Max Reward: $500 or 77% with BP trading at $30 by Mar 27th
Profit Range: BP trading between $25 and $35 by Mar 27th
Estimated Commission (round trip): $12
Downside stop @ $22
Upside stop @ $31

Positive Theta

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