Closing Trade – call ratio backspread

Stock / Symbol: JP Morgan / JPM
Price at trade entry: $44.84
Price at this trade post: $45.55
Option Strategy: call back spread

Reasoning: With JPM looking like it might just settle in between our profit ranges, we're going to close this trade out for a small loss. We sold this spread for a $0.40 credit and are now buying it back at a debit of $0.58 for a $0.18 loss per contract.

Max Risk: $780 (at Mar expiration)
Max Reward: unlimited
Profit Range: $0 - $46.40 and $51.60 + (at Mar expiration)
Realized Loss: $54

Trade Details:

BTC -3 JPM Mar11 46 Calls
STC 6 JPM Mar11 49 Calls
for a net debit of $0.58 per contract

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