Stock Symbol: [private_monthly]GE[private_monthly]
Option Strategy: butterfly call spread
Max Profit: $159
Max Risk: $141
Max Return: 112%
Profit Range: $0 - $16.53 & $17.47 +
Reasoning: taking advantage of increased volatility due to earnings coming out + anticipating a move of at least .50 either way due to earnings. We're being very conservative here so if you want to risk more, just add to the number of contracts in the same ratio.
Trade Details:
[private_monthly]
Sell -3 GE Oct10 16 Call @ $1.09 ($327.00)
Buy 6 GE Oct10 17 Call @ $0.29 $174.00
Sell -3 GE Oct10 18 Call @ $0.02 ($6.00)
Requirements:
Cost/Proceeds ($159.00) Net Credit
Option Requirement $300.00
Total Requirements $141.00
Estimated Commission $15.00
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Chart:
[private_monthly]
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