We own a 1×2 call spread against 100 of our SNOW shares. We will take profits on part of it and leave one of the short calls as a “covered call” through next weeks expiration.
Sell to close: SNOW Oct 20th (monthly) 165.00 strike call (ratio of 1)
Buy to close: SNOW Oct 20th (monthly) 180.00 strike call (ratio of 1)
Credit:Â 3.45Â – this order has been filled
This locks-in a profit of +$130.00 overall in the spread. The 180 covered call will need to be monitored to ensure it expires OTM next week.
We have a pending order to enter into a new short-term bearish trade in Cisco (CSCO) as follows:
Buy to open: CSCO Nov 17th (monthly) 55.00 strike put
Debit: 2.05Â – order still pending
Max risk = 2.05 or $205.00 per contract
Max reward = unlimited on a move lower