Stock / Symbol: [private_monthly]Intel / INTC [/private_monthly]
Price at trade post: $23.76
Option Strategy: butterfly call spread
Reasoning: [private_monthly] Although INTC was hit hard this week with news that the flooding in Thailand has negatively effected its revenues, we feel that it is now settling down. This trade is structured for maximum profit with INTC trading at $24 by this Friday. If the stock looks to move much higher or lower than $24 by friday, we'll adjust the trade by buying either Jan12 22.5 puts or calls.
Max Risk: $216
Max Reward: $180 or 84% @ $24 by Dec 16
Profit Range: $23.60 - $24.40
Trade Details:
[private_monthly]
BTO 4 INTC Dec11 23 Calls
STO -8 INTC Dec11 24 Calls
BTO 4 INTC Dec11 25 Calls
for a net debit of $0.54 per contract (GTC / limit order)
Requirements
Cost/Proceeds $216.00
Option Requirement $0.00
Total Requirements $216.00
Estimated Commission $20.00
[/private_monthly]
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