Stock / Symbol: Whole Foods Market / WFM
Option Strategy: call spread
Trade entry date: Jun 24
Price at trade entry: $60.07
Price at this post: $65.87
Max Risk: $1075
Max Reward: $175 or 16% by Aug 19th
Profit Range: $52.15 + by Aug 19th
Max Profit at: $52.50 + by Aug 19th
Reasoning: Since we put this high probability trade on, WFM has moved up 9.7%, which should enable us to close out this trade early for nearly the full profit. If you're the patient type, you can hold out for the full $2.50 on the spread as WFM can drop 20.30% by Aug expiration and still have the spread worth $2.50. However, as WFM does report on the 27th (next Wednesday), we're going to see if we can close the trade before then for a credit of $2.45, giving us a 14.48% return in about a month. As it may take a while to get filled, we're using a GTC order.
Trade Details:
[private_monthly]
STC 5 WFM Aug11 50 Calls
BTC -5 WFM Aug11 52.5 Calls
for a net credit of $2.45 per contract (GTC / limit order)
[/private_monthly]
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