✅ Take Profit Alert on DFS: Wednesday, April 9, 2025
Closing DFS Call Credit Spread — 86.2% of Max Reward
📝 Trade Breakdown:
Strategy: Bear Call Spread
Underlying: Discover Financial Services ($DFS)
Strike Prices: Short 165 Call / Long 190 Call
Expiration: April 17, 2025 (8 days remaining)
Entry Credit: $8.15
Max Risk: $16.85
Max Reward: $815 per spread
Current Profit: $702.50
86.2% of Max Premium Captured
💡 Why I’m Closing:
This trade has done its job.
DFS remains in a downtrend, and the stock is trading nearly $19 below the short 165 strike. Technicals continue to show weakness, but with only 8 days to expiration and over 86% of max profit already captured, the remaining premium just isn’t worth the risk of a reversal or a volatility spike.
The IV Rank is still high, and I don’t need to give the market another full week to take this away from me.
When a high-probability trade like this one delivers most of the reward ahead of schedule, I prefer to close the position and move on to the next setup with fresh capital and a clean slate.
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*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.