Stock / Symbol: [private_monthly]Apache / APA[/private_monthly]
Option Strategy: diagonal call spread
Price at trade entry: 124.58
Price at this adjustment: 120.80
Reasoning: With [private_monthly]Apache[/private_monthly] up slightly following its earnings release and conference call, it looks like we can take off the protective put.
Trade Details:
[private_monthly]
STC 1 APA Feb11 120 Put
for a net credit of $0.43 per contract
[/private_monthly]
Max Risk: $909 (adjusted up from $737)
Max Reward: $384 or 42% (adjusted down from $457) by Feb 2011 expiration
Profit Range: $123.53 - $143.41 (adjusted from $122 - $148) by Feb 2011 expiration
Max Reward Price: $130 at Feb 2011 expiration
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