Trade Closed – PAY calendar call spread

Stock / Symbol: Verifone Systems / PAY
Option Strategy: calendar call spread
Price at trade post: $41.81
Price at trade close: $49.29

Max Risk: $442
Realized Reward: $103 or 23% (before commissions)

Reasoning: On a down day in the market, PAY is up really big. We closed the trade out here to lock in profits and protect against the stock trading over $52 by March expiration, which is our upside breakeven point.

Closing Trade Details:

STC 1 PAY Jan12 45 Call
BTC -1 PAY Mar11 45 Call
for a net credit of $5.45 per contract

Chart:

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