For our combo (short put / long call) trade on [private_monthly]Corning (GLW)[/private_monthly] we're going to add a calendar spread to help bring our trade to profitability more quickly.
Original Strategy: Combo (short put / long call)
Additional Strategy: calendar spread
Reasoning: We still expect this stock to go to 20 – 22 but now it looks like it'll take until October to get there. The trade costs $102 to put on and can generate a maximum profit of $117.60 [private_monthly]GLW[/private_monthly] is trading at or over $18 on October 15th. If it's not over $18 by then, we'll look to sell a Nov strike option the following Monday. If you participated in our initial trade on this stock on Aug 9th, it's looking like we'll be owning it at $18 a share unless [private_monthly]GLW[/private_monthly] does close over $18 on Sep 17th. Our conviction on this stock is strong so this new calendar spread will certainly help to bring us to profitability more quickly. For those of you not already in this trade, this is a good entry point for a position in this stock using a calendar spread.
Trade Details:[private_monthly]
Buy 1 GLW NOV10 16 CALL for $1.28
Sell -1 GLW OCT10 18 CALL $0.25
Requirements:
Cost/Proceeds $103.00
Option Requirement $0.00
Total Requirements $103.00
Estimated Commission $12.95
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