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1/11/2021

Per my message on Friday, Jan 08th, I placed at GTC sell order on this TWTR put calendar spread position. The order for a credit of $3.30 filled just shortly after today's market open. Here is what I posted on Friday:Trade Exit – TWTR Put Calendar SpreadJan 08, 2021 | By Positive ThetaStock / Symbol: Twitter / TWTRStrategy: Put Calendar SpreadTrade entry date / price: 03 Jan 2021 / $54.50Price at this post: $50.80Update / Reasoning: TWTR, just a handful of trading days from our position entry, has traded 6% lower already. Thus, our put calendar spread is currently up over 25%. I'm going to enter the closing order here, targeting a gain of 40%. At the moment, the Greeks are: -21.8 Delta, 0.7 Theta, and 6.7 Vega. If TWTR trades back up over $52.50, I will likely adjust the sell order to get an immediate fill.Trade Exit Order:STC 1 TWTR 19Mar21 47 putBTC 1 TWTR 15Jan21 47 putFor a min net credit of $3.30 per contract (GTC order, limit order). The mid is currently at a credit of $2.95. To get filled at this price, TWTR will need to trade further down, to around $49. (Jan 11, 2021 update: I was filled at a $3.30 credit shortly after market open).Analysis:Max Risk: $235Max Reward: $200 or 85% with TWTR at $47 on Jan 15thProfit Range: TWTR between $42.45 and $52.85 on Jan 15thEstimated Commission (round trip): $2.60Upside Stop at: $56.12Take profits at: $47 to $49Realized Profit / Loss: $100 or 40% (pre commission)
1/8/2021

I just posted this to my subscribers at PositiveTheta.com

Stock / Symbol: Twitter / TWTR
Strategy: Put Calendar Spread
Trade entry date / price: 03 Jan 2021 / $54.50
Price at this post: $50.80

Update / Reasoning: TWTR, just a handful of trading days from our position entry, has traded 6% lower already. Thus, our put calendar spread is currently up over 25%. I'm going to enter the closing order here, targeting a gain of 40%. At the moment, the Greeks are: -21.8 Delta, 0.7 Theta, and 6.7 Vega. If TWTR trades back up over $52.50, I will likely adjust the sell order to get an immediate fill.

Trade Exit Order:
STC 1 TWTR 19Mar21 47 put
BTC 1 TWTR 15Jan21 47 put
For a min net credit of $3.30 per contract (GTC order, limit order). The mid is currently at a credit of $2.95. To get filled at this price, TWTR will need to trade further down, to around $49.

Analysis:

Max Risk: $235
Max Reward: $200 or 85% with TWTR at $47 on Jan 15th
Profit Range: TWTR between $42.45 and $52.85 on Jan 15th
Estimated Commission (round trip): $2.60
Upside Stop at: $56.12
Take profits at: $47 to $49
Anticipated Profit / Loss upon fill: $100 or 40% (pre commission)
1/4/2021

Reasoning: TWTR is has traded lower for the past few days since reaching a new 52 week high back on Dec 16th. Technically, TWTR looks like it will continue to retrace back towards its 50 day average, which is around the $48 level. On this premise, we're going to enter into Put Calendar Spread on TWTR, with both legs of the trade at the 47 strike. The short leg of this (short Delta) Calendar Spread expires on Jan 15th, with the long leg expiring on Mar 19th. Upon fill, the Greeks will be approximately: -19.1 Delta, 0 Theta, and 6.6 Vega. We will look to exit the trade with TWTR trading down at the $47 to $48 range.Trade Entry Order:BTO 1 TWTR 19Mar21 47 putSTO 1 TWTR 15Jan21 47 putFor a max net debit of $2.35 per contract (day order, limit order). The mid is currently at a debit of $2.27. I was filled at $2.30Requirements:Cost/Proceeds: $235Margin Requirement: $0Total Requirements: $235Analysis:Max Risk: $235Max Reward: $200 or 85% with TWTR at $47 on Jan 15thProfit Range: TWTR between $42.45 and $52.85 on Jan 15thEstimated Commission (round trip): $2.60Upside Stop at: $56.12Take profits at: $47 to $48

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