I filled a substantially similar setup to this yesterday, but didn't have time to post.
It still looks good today, even though price has popped a bit.
Buy 100 Shares at 6.20
Sell Sept 30th 6.5 call
Entire Package: 5.70 ($570)
Max Profit: $80 (14% ROC, if called away at 6.50)
It still looks good today, even though price has popped a bit.
Buy 100 Shares at 6.20
Sell Sept 30th 6.5 call
Entire Package: 5.70 ($570)
Max Profit: $80 (14% ROC, if called away at 6.50)
Comment:
I originally opened this trade on August 16th, at which time I bought 100 shares at 5.88 and sold the Sept 30th 6 call for a 5.35 debit (a slightly diff setup than shown above when all was said and done). Price has now ripped through the 6 short call and is just shy of what I would get if called away at 6 (ROC's currently 10.7%). I looked at possibly rolling the short call up and out to attempt to capture part of this up move, but that doesn't look particularly productive credit wise, so I'm just going to attempt to close it out here tomorrow at NY open.
Trade closed manually:
Covering this here for a 5.88 credit; $46 net profit per contract/100 shares.