Stock / Symbol: [private_monthly] Williams-Sonoma / WSM [/private_monthly]
Price at trade opening: $32.70
Option Strategy: diagonal call spread
Max Risk: $370
Max Reward: $315 or 85% by December expiration
Profit Range: $32.27+
Max Reward Price: $35 at December expiration
Uncalled Return: 17.77%
Reasoning: The fundamentals and technicals are very positive. We're also anticipating a great quarter for high end retailers. Also, on a big down day, this stock is up nearly 1% which is very bullish.
Trade Details:[private_monthly]
Buy 2 WSM Feb11 33 Call @ $2.25 = $450.00
Sell -2 WSM Dec10 35 Call @ $0.40 = ($80.00)
for a net debit of $1.85 per contract
Requirements:
Cost/Proceeds $370.00
Option Requirement $0.00
Total Requirements $370.00
Estimated Commission $12.95
[private_monthly]
Chart:
[private_monthly]
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