Stock / Symbol: [private_monthly]JP Morgan / JPM[/private_monthly]
Price at trade post: $44.70
Option Strategy: call back spread
Max Risk: $774 (at Mar expiration)
Max Reward: unlimited
Profit Range: $0 - 46.40 & $51.60 + (at Mar expiration)
Reasoning: With earnings coming this Friday, we're structuring at call back spread which will enable us to profit whether the stock moves up, down, or sideways. If [private_monthly]JPM[/private_monthly] really pops with earnings, we're set up to capture unlimited upside. If the stock crashes, the fact that we took in money to open the trade ensures at least a 4 to 5% profit.
Trade Details:[private_monthly]
Sell -3 JPM Mar11 46 Call
Buy 6 JPM Mar11 49 Call
for a net credit of $0.42 per contract (note: we always recommend a GTC limit order and it is particularly important here. If we're not filled by market close on the 13th, we'll cancel the order)
Requirements:
Cost/Proceeds ($120.00)
Option Requirement $900.00
Total Requirements $780.00
Estimated Commission $12.95
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Chart:[private_monthly]
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