This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Carvana / CVNA
Strategy: Diagonal Put Spread
Trade entry date / price: 19 Jan 2023 / $40.80
Price at this post: $48.10
Update / Reasoning: Upside stop of $28 hit. Closing out trade here for a loss.
Trade Exit Order:
STC 1 CVNA 20Oct23 40 put
BTC 1 CVNA 4Aug23 37 put
For a min net credit of $5.95 per contract (GTC order, limit order). The mid is currently at a credit of $5.95. I was just filled at $5.95
Requirements:
Max Cost/Proceeds: $675
Margin Requirement: $0
Max Total Requirements: $675
Analysis:
My Max Risk: $670
My Max Reward: $250 or 37% with CVNA at $37 on Aug 4th
Profit Range: CVNA between $32 to $44 on Aug 4th
Commission (round trip): $2.60
Upside stop @ $48
Realized Profit / Loss: -$75 or -11% (pre commission)
