Trade Exit – DIS Vertical Call Spread

Stock / Symbol: Disney / DIS
Strategy: Vertical Call Spread
Trade entry date / price: 27 Aug 2020 / $134.93
Price at this post: $136.75

Update / Reasoning: In the face of a big down day in the market, DIS is up strong. With our position expiring this Friday, we're going to attempt to close this out today for a modest profit. Current Greeks on this position are: 31.6 Delta, -5.0 Theta and 0.5 Vega.

Trade Details:

STC 1 DIS 11Sep20 135 call
BTC 1 DIS 11Sep20 140 call

For a min net credit of $2.15 per contract (GTC order, limit order). The mid is currently at a credit of $2.24 and I was filled at $2.15.

Analysis:

Max Risk: $185
My Actual Risk: $178
Max Reward: $315 or 170% with DIS at/over $140 on Sep 11th
Profit Range: DIS over $136.85 on Sep 11th
Commission (round trip): $6
Realized Profit / Loss: $37 or 20% (pre commission)

Positive Theta

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