Trade Exit Order – OSTK Vertical Call Spread

Stock / Symbol: Overstock / OSTK
Strategy: Vertical Call Spread
Trade entry date: 06 Apr 2021 / $66.90
Price at this post: $79.00

Update / Reasoning: Although this trade's time horizon is 5 months, I'm entering an exit order here to attempt to exit the trade earlier, with about a 15% return. With OSTK at it's current level, I expect this order will fill by the end of May. On entry, the Greeks were: 3.5 Delta, 0.7 Theta, and -2.3 Vega. The current Greeks are: 2.7 Delta, 0.9 Theta, and -2.5 Vega.

Trade Exit Order:
STC 1 OSTK 17Sep21 30 call
BTC 1 OSTK 17Sep21 35 call

For a min net credit of $4.65 per contract (GTC order, limit order). The mid is currently at a credit of $4.40.

Analysis:

Max Risk: $410
Max Reward: $90 or 22% with OSTK at/over $35 on Sep 17th
Profit Range: OSTK at/over $34.15 at market close on Sep 17th
Estimated Commission (round trip): $2.60
Downside Stop at: $35
Anticipated Profit / Loss upon fill: $60 or 14.8% (pre commission)

Positive Theta

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