Stock / Symbol: Slack Technologies / WORK
Strategy: Diagonal Call Spread
Trade entry date / price: 14 Aug 2020 / $28.35
Price at this post: $27.78
Update / Reasoning: Going to enter in our exit order here, which likely won't fill until WORK is trading at/over $28.75. Note that, although WORK is trading below where it was when we entered the position, we are currently up on this trade.
Trade Exit Order:
STC 1 WORK 18Jun21 28 call
BTC 1 WORK 16Oct20 30 call
For a min net credit of $5.65 per contract (GTC order, limit order). The mid is currently at a credit of $5.30.
Analysis:
Max Risk: $500 (reduced from $530)
Max Reward: $190 or 38% with WORK at $30 by Oct 16th
Profit Range: WORK between $27.30 and $35.90 by Oct 16th
Estimated Commission (round trip): $3.25
Suggested Downside Stop: $21.54
Anticipated Profit / Loss upon fill: $72 or 14% (pre commission)
