Stock / Symbol: [private_monthly]Walt Disney Co / DIS[/private_monthly]
Option Strategy: diagonal call spread
Trade entry date: Jun 7
Price at trade entry: $39.82
Price at this post: $38
Adjustment: [private_monthly]DIS[/private_monthly] is not looking as strong as we'd like to see it at this point so we're going to roll the short 42 calls into the 40 strike calls. This will become a calendar call spread
Trade Details:
[private_monthly]
BTC -2 DIS Jul11 42 Calls
STO -2 DIS Jul11 40 Calls
for a net credit of $0.22 per contract
Max Risk: $470 (adjusted down from $510)
Max Reward: $90 or 19% by Jul 2011 expiration
Profit Range: $38.98 - $41.27
Max Profit at: $40 by Jul 2011 expiration
Uncalled Return: 10%
Requirements:
Cost/Proceeds $508.00
Option Requirement $0.00
Total Requirements $508.00
Estimated Commission $12.95
[/private_monthly]
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