Stock / Symbol: [private_monthly]United States Oil Fund / USO[/private_monthly]
Option Strategy: diagonal call spread
Trade entry date: Sep 30
Price at trade entry: $31.24
Price at this post: $39.35
Reasoning: With our short 32 strike calls deep ITM, we've reached our full profit potential on this trade (at this price). We could make more if USO pulls back to 32 by Friday but that is highly unlikely. We're going to close out this trade now for around a 17% profit in 47 calendar days. Note that we're using a Good Till Cancelled order in case it takes a day or two to close this one out; but we need to close it by this Friday.
Trade Details:
STC 1 USO Jan12 26 Call
BTC 1 USO Nov 32 Call
for a net credit of $6.05 per contract (GTC, limit order)
Max Risk: $515
Profit Range: $30.40 + by Nov 18
Max Reward: $134 or 26.0% @ 32 by Nov 18
Realized Profit / Loss upon fill: $90 or 17.5% (pre-commission)
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