Stock / Symbol: [private_monthly]iShares FTSE China 25 Index Fund / FXI[/private_monthly]
Option Strategy: bear call spread
Trade entry date: Feb 10
Price at trade entry: $41.37
Price at this adjustment: $44.18
Reasoning: With [private_monthly]FXI[/private_monthly] trading above our break even point and with just a week and a half to go till March expiration, we're going to adjust the trade here to give us some more time to be right on the trade.
Trade Details:[private_monthly]
Buy -4 FXI Mar11 43 Calls
Sell 4 FXI Mar11 45 Calls
for a net debit of $1.12 per contract
Then,
Sell -5 FXI May11 43 Calls
Buy 5 FXI May11 45 Calls
for a net credit of $1.03 per contract
Requirements
Cost/Proceeds ($515.00)
Option Requirement $1,000.00
Total Requirements $485.00
Estimated Commission $12.95
[/private_monthly]
Max Risk: $800 (adjusted from $660 at Mar expiration)
Max Reward: $200 or 25% (adjusted from 140 or 21.2%)
Profit Range: $0 - $43.40 (at May expiration)
Non-members, click here for access
Speak Your Mind