Stock / Symbol: [private_monthly]Johnson & Johnson / JNJ[/private_monthly]
Option Strategy: calendar call spread
Trade entry date: Oct 28
Price at trade entry: $65.70
Price at this post: $63.55
Current Position : [private_monthly]
Long 2 JNJ Apr12 65 Calls
Short -2 JNJ NovWk1 65 Calls
at a net cost of $2.18 per contract
[/private_monthly]
Reasoning: We're going to put in a day order in an attempt to close out the trade for about a 10% gain in a week. If we don't get filled today, the short calls will expire worthless and we'll then look to sell more near term calls on an up day in the market next week.
Trade Details : [private_monthly]
STC 2 JNJ Apr12 65 Calls
BTC -2 JNJ NovWk1 65 Calls
for a net credit of $2.40 per contract (day order, limit order)
[/private_monthly]
Max Risk: $436
Profit Range: $63.70 – 66.20 (Oct exp)
Max Profit: $115 or 26% @ $65 by Nov 4
Suggested Downside Stop: NA
Suggested Upside Stop: @ $68
Profit / Loss upon fill: $44 or 10.1% (pre-commission)
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