This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Grubhub / GRUB
Option Strategy: Calendar Call Spread
Trade entry date / price: 16 Apr 2020 / $40.55
Price at this post: $48.25
Reasoning: Ahead of GRUB's scheduled earnings announcement tomorrow afternoon, we're currently up over 50% on this trade. So, the prudent thing to do here is lock in the profit. The current Greeks on this position are: 16.3 Delta, 31.2 Theta and 13.7 Vega.
Closing Trade Details:
STC 1 GRUB 15Jan21 50 call
BTC 1 GRUB 08May20 50 call
For a min net credit of $8.25 per contract (GTC order, limit order). The mid is currently at $8.30. I have not yet been filled.
Analysis:
Max Risk: $525
Max Reward: $500 or 95% with GRUB trading at $50 on May 8th
Profit Range: GRUB at/over $40.50 by May 8th
Commission (round trip): $6
Realized Profit / Loss upon fill: $300 or 57% (pre commissions)
Suggested upside stop: $55 or 57% (pre commissions)
Suggested downside stop: $31.99
