April 29, 2020 - MDT Alert (CB)

I cannot think of any good reason to hold the CB position any longer.

CB has moved up over the short strike price in two days and as a result, you will pick about 38% of the maximum profit in those two days.

So, my suggestion today will be to close the position and
book the profit.

Here is how you do that.

Sell to Close June 19th - $105.00 call @ $10.70

Buy to Close June 19th - $110.00 call @ $7.50

The net credit will $3.20 per spread. The cost, when initiated, was $2.10 per spread.

The net result is a profit of $1.10 per spread or $550 if you traded the suggested 5 lot.

The return for the two days in 52% of the amount invested.

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