SPWR - So deep in the money it's silly but now they are underpriced again so we're going to cash out both of our spreads for $44,755 out of a potential $48,000 and we're going to move to the following:
- Sell 20 SPWR 2023 $20 puts for $5.20 ($10,400)
- Buy 50 SPWR 2023 $20 calls for $8.75 ($43,750)
- Sell 50 SPWR 2023 $35 calls for $4.10 ($20,500)
That's net $12,850 on the $75,000 spread and we're $16,000 in the money to start and we're taking $31,905 off the table from our original $5,070 entry AND we've reduced our obligation to own SPWR from 3,000 shares to 2,000 - but at a much higher price (was $8). Still, worst case is owning 2,000 shares at $20 but net of the $26,000 profit we have in our pocket, that would be net $14,000 or $7/share - back where we were when we started only now we've doubled our upside potential.
So there you go: A new SPWR trade that can make $62,150 (483%) as a new trade and WTRH is a $10,000 spread that's currently a net $2,325 credit, so that one has $12,325 (530%) upside potential. If that were the whole portfolio - it's good for a great return over 18 months!
