Stock Symbol: [private_monthly]DIS[/private_monthly]
Option Strategy: diagonal call spread
Max Risk: $1164
Called Return: 20% ($233)
Uncalled Return: 9%
Profit Range: $33.42 - $43.13
Reasoning: [private_monthly]Disney - DIS[/private_monthly] has very strong fundamentals and is currently trading in the low end of it's trading cycle, giving it nice upside from here. If the stock closes over $35 on November expiration, we'll get called out for a 20% gain. If the stock closes under $35 Nov 19th, we'll look to sell another near term call option.
Trade Details:
[private_monthly]
Sell -2 DIS NOV10 35 CALL @ $0.58 ($116.00)
Buy 2 DIS JAN12 30 CALL @ $6.40 $1,280.00
Requirements:
Cost/Proceeds $1,164.00
Option Requirement $0.00
Total Requirements $1,164.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
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