Stock / Symbol: [private_monthly]Cheniere Energy / LNG [/private_monthly]
Option Strategy: covered strangle
Trade entry date: July 18th
Price at trade entry: $9.85
Price at this post: $5.50
Current Position:
[private_monthly]
Long 200 shares of LNG
for an effective cost of $8.29 per share
[/private_monthly]
Adjustment: Our short 9 strike Sep calls recently expired, lowering our cost basis to $8.29. A this point, we're going to sell the Oct 5 strike puts to lower our cost basis down to around $7.89. If [private_monthly]LNG[/private_monthly] is trading under $5 by Oct expiration, we'll be long an additional 200 shares but our cost basis will be down to $6.77 per share
Trade Details:
[private_monthly]
STO -2 LNG Oct11 5 puts @ $0.40 credit (GTC, limit order)
[/private_monthly]
Max Risk: $2,708
Max Reward: unlimited
Profit Range: $7.89 + (unassigned) or $6.77 + (assigned)
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