Intuitive Surgical (ISRG) I locked in profit with a chicken spread with the Jan 100 calls by writing the Jan 115 calls. This stock just keeps on going higher. Net profit today in this position has $2300 in net profits. You can only lose profits by staying this position longer than Friday or if the stock price falls below $124 by Friday. Close out this position on Thursday or Friday if this stock is trading above $124.

If you still have the original position, the net profit is worth $3240 with no cap to the upside. High price range by Friday is $133 if you are holding without writing the spread.

Intuitive Surgical (ISRG) total cost $2210. Buy long Jan $100 calls and buy long Jan $85 puts, each for two contracts. High for the calls on Dec. 13^th and 14^th were $22-$24. Closing out the calls at that price = $4600- cost $2210= net profit of $2390 the stock still has open gap on the stock charts around $86, can hold the puts for free after taking profits. You also have the option to write a covered spread on the Jan $100 calls using the Jan 115 calls, capturing the premium for the original call position. The other possibility using the write premium of the Jan 115 calls to buy an April $100 puts.

I have written the Jan 115 calls for $7.7, capturing the cost of the Jan $100 calls. Total cost for the position is now only $395. This is how you can build a massive options position by playing leap frog. There are just a few contracts being traded, stays under the radar of most hedge funds. I will be tracking that scenario on Dec 21. I want to see how that works out. If ISRG stock price falls below $100 and below $85 will you will continue to be profitable. If ISRG stock price goes higher, you would have locked in for a $15 point spread between Jan $100 calls and Jan$115 calls.

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