Closing Trade – TSLA calendar put spread

Stock / Symbol: Tesla Motors / TSLA
Option Strategy: calendar put spread
Price at trade entry: $24.27

Reasoning: Our short put is in the money. Closing here for a quick 44% gain (before commissions).

Trade Details:

BTC -1 TSLA Apr11 26 Put
STC 1 TSLA May11 26 Put
for a net credit of $1.80 per contract

Max Risk: $125
Max Reward: $74 or 67% by Apr 2011 expiration
Profit Range: $24.70 - 27.50
Max Profit at: $26
Uncalled Return: 28%
Realized Retun (before commissions): 44%

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