Stock / Symbol: [private_monthly]Johnson & Johnson / JNJ[/private_monthly]
Price at trade entry: $62.40
Option Strategy: calendar call spread
Current Position: [private_monthly]
Long 4 JNJ Apr12 62.5 Calls
Short 4 JNJ Oct11 62.5 Calls
at a cost basis of $2.65 per contract
[private_monthly]
Update: In case [private_monthly]JNJ[/private_monthly] continues higher, we're going to add some protective calls here. It's looking like we'll be closing our original position next Friday as our short calls are ITM. After that, we'll write some near term calls against the calls were buying today.
Trade Details : [private_monthly]
BTO 2 JNJ Apr12 60 Calls
for a debit of $6.40 per contract (GTC, limit order)
[/private_monthly]
Max Risk: $2,350
Profit Range: $62.35 – 63.15 & $69+ (Oct exp)
Max Profit: $25 @ $62.50 & unlimited over $69 by Oct exp
Max Loss: ($115) @ $65.50 by Oct exp
Suggested Downside Stop: @ $58
Suggested Upside Stop: NA
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