Trade 1 (9:56:41 am, PT)
buy +4 July 16, 2018 2825 calls at $0.03 ("wings")
sell -4 July 16, 2018 2805 calls at $1.08 ← 27.48 delta
- net credit: $1.05 x 4 x 100 = $420 (max profit)
- margin: $7560
Trade 2 (12:15:34 pm, PT)
- buy back the short calls (2805 strike) at $0.05 to take profits and remove the risk
- let the long "wings" (2825 strike) expire at 1:00 pm, PT
TOTAL PROFIT: $400 (in 2¼ hours) 😃
LEARN TO SELL CALL OPTIONS HERE!
