BIOTECH: MacroDoζer Summer Special 3/5 (+34%)
Happy Jerome Day
Executive Summary
We are closing the trade.
Have a great weekend.
1. Recap Situation
We bailed on a longer-term LEAPS investment and bet on more steady price development.
Check out the original BrainDoζer below.
2. Why Now?
We have 21 days left to contract maturity, and it is Friday. So hell yeah, we are going to close the trade. Thank you, Jerome. Have a great weekend.
3. Trade Execution
Trade Entry - Jul 27, 2022
1) Short Call 83, Sep 16, 2022: 5.80 Credit.
2) Short Put 83, Sep 16, 2022: 5.25 Credit.
3) Long Call 101, Sep 16, 2022: 0.83 Debit.
4) Long Put 65, Sep 16, 2022: 0.79 Debit.
Total: 9.85 Credit.1
Trade Exit - Aug 26, 2022
1) Long Call 83, Sep 16, 2022: 4.85 Debit.
2) Long Put 83, Sep 16, 2022: 2.77 Debit.
3) Short Call 101, Sep 16, 2022: 0.11 Credit.
4) Short Put 65, Sep 16, 2022: 0.05 Credit.
Total: 7.10 Debit.2
The absolute return of this trade is
9.85 - 7.10 = 2.75
The capital used was 8.15, resulting in a return on capital of
2.75 / 8.15 = 33.7%
Total credit equals the sum of the mid-prices of each bid/ ask spread. Brokers usually get filled mid-price for liquid options.
Total credit equals the sum of the mid-prices of each bid/ ask spread. Brokers usually get filled mid-price for liquid options.