Close the Zim Integrated Shipping Options for a net gain of 127% in 47 days
March 14, 2022 - 12:09 pmWe put on a bullish synthetic long option trade on ZIM on Jan 26, 2022 by purchasing the Jan 2023 $65 Calls for $7.80, and selling the same expiration $40 Puts for a credit of $7.70, for a net cost of $0.10.
Today we are closing this trade by selling the calls for $17.00 and buying back the Puts for $4.00, representing a net profit of 127.2%!
Solid trade and we are closing it because the stock is running up ahead of where we see it's fair value, amidst a potential slowdown in manufacuring, shipping and consumer spending given the current economy.
| Entry Date |
Long/Short |
Option |
Expiration |
Strike |
Put/Call |
Entry Price |
Stop Price |
Risk Level |
Current Price |
Gain/Loss |
Net Gain/Loss |
| 1/26/2022 |
Long |
ZIM |
Jan-23 |
$65.00 |
Call |
$7.80 |
|
Low |
$17.00 |
117.9% |
117.9% |
| 1/26/2022 |
Short |
ZIM |
Jan-23 |
$40.00 |
Put |
($7.70) |
|
Low |
($4.00) |
48.1% |
9.3% |