Earnings Beat – ISRG Trade Update #1

Market Context
Good day Insiders,

As anticipated Intuitive Surgical was a mover on earnings and is trending in the opposite direction of the market today. Considering the market is up, ISRG is down some -4.8%. Let’s close this one of out for a profit! Yes, we could let it ride and see where the last hour takes us, but this is trading, not Vegas.

The Trade
Recall that we bought the put side of the condor for 1.36, we are now collecting 4.69 credit for the sale. That is a profit of 3.33 (calculations below). *** The put spread is now going for 5.50****

Risk & Reward
We had 4 contracts on this and we are looking at a profit if 3.33. That works out to a net profit of about $1,200, after all, other pieces of the trade are taken into consideration. We used $5,800 in margin and are locking in a winning trade for a 20.7% return on capital. Not bad for the day.