Stock / Symbol: Select Sector Spdr Energy ETF / XLE
Option Strategy: Calendar Call spread
Trade entry date / price: 06 Sep 2019 / $58.92
Price at this post: $60.15
Reasoning: Our upside target of $60 was hit, so we're entering an order to close the trade for a quick profit. Please note that it will likely take a few days to get filled at the level we want. Current Greeks are: -4.4 Delta, a positive Theta of 5.1, and 17.6 Vega.
Position Details:
Long 2 XLE 20Dec19 60 calls
Short 2 XLE 20Sep19 60 calls
at a debit of $1.58 per contract.
Closing Trade Details:
STC 2 XLE 20Dec19 60 calls
BTC 2 XLE 20Sep19 60 calls
for a min net credit of $1.74 per contract. (GTC order, limit order)
Analysis:
Max Risk: $316
Max Reward: $130 or 41% by Sep 20th with XLE at $60
Profit Range: XLE between $58.75 and $61.20 by Sep 20th
Suggested Downside Stop @ $55
Upside Stop @ $60
Projected Profit / Loss upon fill: $32 or 10% (before trade costs)
Estimated Trade cost (round trip): $12
