Stock / Symbol: [private_monthly]Priceline.com / PCLN[/private_monthly]
Trade entry date: Sep 30
Price at trade entry: $460.31
Option Strategy: put spread
Reasoning: Although PCLN traded well below our price target of $440 (down to $411.26 on Oct 4), we still had too much time in the short puts to close the trade back then. Although this trade reaches it's full potential at Friday's expiration, we're going to put in an order to close the trade here for around a 10% gain to free up capital for a new trade. We're using a GTC order as it may take a day or two to fill.
Trade Details:
STC 1 PCLN Oct11 510 Put
BTC -1 PCLN Oct11 500 Put
for a net credit of $8.70 per contract (GTC, limit order)
Max Risk: $788
Max Reward: $212 or 26.9% @ 0 - $500 by Oct exp
Profit Range: $0 - $502 by Oct exp
Realized Profit / Loss upon fill: $82 or 10.4% (pre-commission)
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