Trade Exit – BP Calendar Call Spread

Stock / Symbol: BP PLC / BP
Strategy: Calendar Call Spread
Trade entry date / price: 10 Mar 2020 / $25.90
Price at this post: $24.14

Reasoning: With BP finally recovering from the lows back in October, our open position is back in the black. Thanks to numerous calls we sold along the way, we're now sitting on a net gain of around 24%. Not bad at all, especially considering that BP is still trading lower than it was when we entered the position last March. Expecting that BP is closing in on upside resistance, I'm going to close this Calendar Call Spread position and lock in the gains here.

Exit Order:
First, if you're holding the 30 strike calls:

STC 2 BP 21Jan22 30 calls
For a min credit of $1.48 per contract (GTC order, limit order). The mid is currently at $1.54. I was just filled at $1.54

Then,

STC 2 BP 21Jan22 25 calls
BTC 2 BP 15Jan21 25 calls
For a min net credit of $2.75 per contract (GTC order, limit order). The mid is currently at a credit of $2.81. I was just filled at $2.82

Analysis:

Max Risk: $725
Max Reward: Unlimited with BP trading over $22.30 by Jan 15th
Profit Range: BP trading over $22.30 by Jan 15th
Commission (round trip): $20.15
Downside stop @ $14.73
Realized Profit / Loss: $186 or 25.6% (pre commission)

Positive Theta

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