OPENING: FORD OCTOBER/MAY 3/5 LONG CALL DIAGONAL
Updated
... for a 1.73 debit/contract.
Metrics:
Max Loss: 173/contract
Max Profit/Return on Capital: 27/contract ; 15.6%
Break Even: 4.73/share
Notes: A small, defined risk engagement trade here in Ford. The metrics generally aren't what I'm looking for in one of these setups (25% ROC or greater), but I'm selling the front month shortie at-the-money, so that's to be expected.
Metrics:
Max Loss: 173/contract
Max Profit/Return on Capital: 27/contract ; 15.6%
Break Even: 4.73/share
Notes: A small, defined risk engagement trade here in Ford. The metrics generally aren't what I'm looking for in one of these setups (25% ROC or greater), but I'm selling the front month shortie at-the-money, so that's to be expected.
Trade active
I just couldn't settle for .27 ($27) max, so rolled the 5 short call out to June for a .19 /contract credit before earnings drop Tuesday after the close. Cost basis/max loss now: 1.54. Max Profit: .46/contract; Break Even at 4.54.Trade closed manually
Closed here for 1.93/contract, .07 short of max with 31 DTE for the front month; .39 ($39)/contract winner; 22.5% ROC. Will re-up with a June/Sept shortly, since it may still have room to run.
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