Our EEM June/Sept double-calendar position has hit our target profit of 15%, and we’re closing the position, as follows:
Day limit order
Sell to close 2 EEM Sept 150 calls
Sell to close 2 EEM Sept 140 puts
Buy to close 2 EEM June 150 calls
Buy to close 2 EEM June 140 puts
for a net credit of $13.65 or better.
Note that 2 contracts per leg represents our entire position. Also note that this is a complex order and the bid/ask spread is $0.30—so we might have to be flexible.
Analysis: We would’ve liked to roll our short options out to July, but even though EEM rallied a little this morning, the share price isn’t close enough to the center of the 140/150 spread to comfortably take on that July trade at this time. At the above closing price, our profit on this trade is 16.72% of total capital risked.