Trade Exit Order – FDX Bear Call Spread

Stock / Symbol: Fed Ex / FDX
Strategy: Bear Call Spread
Trade entry date / price: 08 Sep 2020 / $222.72
Price at this post: $226.22

Update / Reasoning: Despite being wrong about FDX trading down, we're still up on this trade - by about 20% at the moment. As long as FDX closes under $230 by market close tomorrow, we can realize the trade's full 47% profit potential. However, I'd prefer to close this one out today or first thing tomorrow morning to avoid turning a winner into a loser, should FDX miraculously shoot up and close over $230 tomorrow. The Greeks at the moment are : -9.9 Delta, 14.6 Theta and -1.4 Vega. Like always, we're using a GTC order to close this one out.

Trade Exit Details:

BTC 1 FDX 11Sep20 230 call
STC 1 FDX 11Sep20 232.50 call

For a max net debit of $0.25 per contract (GTC order, limit order). The mid is currently at a debit of $0.38 and I have not yet been filled.

Analysis:

Max Risk: $170
Max Reward: $80 or 47% with FDX at/under $230 by Sep 11th
Profit Range: FDX under $230.50 by Sep 11th
Estimated Commission (round trip): $6
Suggested upside stop @ $231.60
Anticipated Profit / Loss upon fill: $55 or 32% (pre commission)

Positive Theta

2 comments to “Trade Exit Order – FDX Bear Call Spread”

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  1. Mike Cleveland - September 10, 2020

    Greetings, I’m considering joining you and would like to review your results. Do you have them for the past year or so? Thank you. Mike

  2. Positive Theta - September 11, 2020

    Absolutely! I’ll email them to you.

    Mike

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