Stock / Symbol: [private_monthly]Best Buy / BBY[/private_monthly]
Price at trade opening: $45.18
Option Strategy: diagonal call spread
Max Risk: $778
Max Reward: $687 or 88% by December expiration
Profit Range: $44.57 +
Max Reward Price: $50 at December expiration
Uncalled Return: 10.57%
Reasoning: With the market continuing bullish, we're looking for best of breed companies to trade that have yet to make an explosive upside move. To us, it looks like this stock is poised to move even higher from here to the $50 range by the end of the year. If this stock trades lower than $50 by December expiration, we'll have realized a 10.57% uncalled return and will then look to sell another near term call.
Trade Details:[private_monthly]
Buy 2 BBY Jun11 45 Call @ $4.35 = $870.00
Sell -2 BBY Dec10 50 Call @ $0.46 = ($92.00)
Requirements:
Cost/Proceeds: $778.00
Option Requirements: $0.00
Total Requirements: $778.00
Estimated Commission $12.95
[private_monthly]
Chart:
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