Dollar General (DG) has made a nice run since I recommended it 8 days ago and is now trading around $160.
Our calls are now deep in the money and this will allow us to pull the trade off early. The expiration I suggested was January 31st, which is two weeks from now.
Let's close the trade and book the profit. This is how you do it.
Sell to Close January 31st - $152.50 call @ $8.00
Buy to Close January 31st - $155.00 call @ $5.60
The net credit will be $2.40 per spread. The debit when the trade was placed was $1.20 per spread, so this results in a $1.20 per spread profit, or a 100% return for the 8 days the position was held.
If we held for another two weeks, it would only increase the profit 10 cents per spread, so I would prefer to close the deal early.
The cash gain will be $720 if you traded the suggested 6 lot.
