Close the Uber trade for a gain of 323%
February 27, 2023 - 11:47 amOn Jan 27th we bought the Uber May 2023 $32.50 Calls for $2.72, and sold the same expiration $27.50 Puts for $1.99, for a net outlay of $0.73 on the trade. Today the Calls are worth $3.95, and the Puts are at $0.86 cents. We are closing both the Calls and Puts today for a net credit of $3.09, which on our $0.73 original cost is a gain of 323%.
Individually, the Calls were up 45.2%, and the Puts were up 57%. The combined leverage of financing the Calls with the short Puts is what helps to amp up the combined return.