Stock / Symbol: [private_monthly]Johnson & Johnson / JNJ[/private_monthly]
Price at trade post: $62.40
Option Strategy: calendar call spread
Reasoning: [private_monthly]JNJ[/private_monthly] does not historically have drastic moves, and has shown strong resilience in this schizophrenic market, making it a great calendar call spread candidate.
Trade Details : [private_monthly]
BTO 4 JNJ Apr12 62.5 Calls
STO 4 JNJ Oct11 62.5 Calls
for a net debit of $2.65 per contract (GTC, limit order)
[/private_monthly]
Requirements
Cost/Proceeds: $1060
Option Requirement: $0
Total Requirements: $1060
Estimated Commission: $12.95
Max Risk: $1,060
Profit Range: $59.75 – 65.00 (Oct exp)
Max Profit: $450 or 42% @ $62.50 by Oct exp
Suggested Downside Stop: @ $58
Suggested Upside Stop: @ $64.50
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