Stock / Symbol: [private_monthly]Walgreen Co/ WAG[/private_monthly]
Price at trade post: $43.20
Option Strategy: calendar call spread
Reasoning: [private_monthly]WAG[/private_monthly] is fundamentally strong and has found nice support at its 50 day average. We're looking for this stock to trade up just slightly to $44 by June expiration. If the stock closes under $44 by June expiration, we'll have taken in an uncalled return 13% and we'll then look to sell another near term call option.
Max Risk: $549
Max Reward: $269 or 49% by Jun 2011 expiration
Profit Range: $42.10 - $46.30
Max Profit at: $44 by Jun 2011 expiration
Uncalled Return: 13%
Trade Details:
[private_monthly]
BTO 3 WAG Oct11 44 Calls
STO -3 WAG Jun11 44 Calls
for a net debit of $1.83 per contract
Requirements:
Cost/Proceeds $549.00
Option Requirement $0.00
Total Requirements $549.00
Estimated Commission $12.95
[/private_monthly]
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