Closing Trade – WFMI call spread

Stock / Symbol: Whole Foods Market / WFMI
Date trade entered: Dec 22, 2010
Price at trade post: $50.99
Option Strategy: call spread

Reasoning: BMO and Morgan Stanley issued a downgrade on WFMI today, which hammered the stock. With not much wiggle room in this trade structure, we're going to manage our risk and close out the trade here.

Trade Details:

STC 3 WFMI Jan11 47 Calls
BTC -3 WFMI Jan11 50 Calls

for a net credit of $1.70 per contract

Max Risk: $723
Realized Gain / Loss: ($213)

Chart:

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