Stock Symbol: [private_monthly]JDSU[/private_monthly]
Entry date: 8/18/10
Price at time of Trade: $10.53
Target Price: $13
Option Strategy: Call Spread
Trade Update:
[private_monthly]
STC 5 Dec 13 call options for approximately $0.18
Net Debit = Approximately $90 + commission
Adjusted cost basis of Dec 10 call = $1.58 - .30 from sale of Dec 13 call = $1.28
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Reasoning:Expect that stock has bottomed here and see it heading back up to 11 within the next 30 days. By closing out the short call, we capture a profit of $0.30 per share, thus lowering our cost basis on the long call down to $1.28. At this point, we're going to enter in a STC order on the 10 strike call at $1.60.
Chart:[private_monthly]
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