CGC Analysis

Canopy Growth Corp. (CGC)

Update 5/16/2019My short iron condor position on CGC reached 50% of maximum potential profit, and line with my trading rules, I took to the profit. I exited for a $0.49 debit, leaving $0.48 of my entry credit as profit. Shares rose by $2.20 during the lifespan of the position. On the chart, the share price rose from my $43.09 entry to a peak of $52.74, and then declined to the exit price of $45.29.

Shares saw a net rise of $5.1% over the 29 days of the position, or a $64% annual rate. The options produced a $98.0% return for a +1,232.93% annual rate.

This is a roll forward to a June 21 expiration of a position exited April 17.

I have entered a short iron condor spread on CGC, using options that trade for the last time 65 days hence, on June 21. The premium is a $0.97 credit and the stock at the time of entry was priced at $43.09.

The implied volatility rank (IVR) stands at 46.

Premium: $0.97 Expire OTM
CGC-iron condor Strike Odds Delta
Long 60.00 95.0% 7
Break-even 55.97 92.5% 10.5
Short 55.00 90.0% 14
Short 35.00 78.0% 16
Break-even 30.97 84.0% 11
Long 30.00 90.0% 6

The premium is 19.4% of the width of the position’s wings.

The risk/reward ratio is 4.2:1.

By Tim Bovee, Portland, Oregon, April 17, 2019


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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