Stock / Symbol: QuantumScape / QS
Strategy: Vertical Call Spread
Trade entry date / price: 10 Jun 2021 / $29.79
Trade exit date / price: 28 Jun 2021 / $29.20
Recap: Our open exit order on the ITM Vertical Call spread on QS filled at the beginning of last week, yielding a 16.7% return. This is yet another example of the power of selling an option's extrinsic value, as the stock was trading lower on the position's exit than it was on the entry.
Position Details:
Long 2 QS 16Jul21 22.5 calls
Short 2 QS 16Jul21 25 calls
In at a net debit of $1.80 per contract and out for a net credit of $2.10 per contract.
Analysis:
Max Risk: $360
Max Reward: $140 or 39% with QS at/over $25 on Jul 16th
Profit Range: QS at/over $24.35 at market close on Jul 16th
Estimated Commission (round trip): $2.60
Downside Stop at: $24.99
Realized Profit / Loss: $60 or 16.7% (pre commission)
