Closed SPOT bull call spread for a loss.
music selection: “Miss You” — The Rolling Stones
On 14JUN2021, I bought 9 bull call spreads in SPOT with 17SEP2021 expiry for 5.30 per share. I put 4,770 in capital at risk. Yesterday, both strikes moved out of the money. Earnings call was scheduled for this morning before open and the implied volatility was enough to move both strikes back into the money on a beat. I decided to hold through earnings.
SPOT beat on the top line but shares sold off on less than expected new user numbers. This moved me a little over 12% out of the money with only 52 days for the price to recover. I sold today for 2.10 a share. I booked a 2,880 loss (60.4%) over 38 days.
Four of five bull spreads with August expiry are in the money. The fifth (MDLZ) is currently at roughly break even, showing a 14 dollar expected profit at expiry. If expiry were now, my total short term gain for the month of August would be 10,145, including the 2,880 loss just booked. My three September expiring spreads are all in the money and would, if expiry were today, profit 6,106 for the month.
Devour your prey raptors!