New Trade – calendar call spread

Stock / Symbol: [private_monthly]Walmart / WMT [/private_monthly]
Price at trade post: $54.67
Option Strategy: calendar call spread

Max Risk: $588
Max Reward: $413 or 70% by Jun 2011 expiration
Profit Range: $53.43 - $56.82
Max Profit at: $55
Uncalled Return: 33%

Reasoning: We think this stock will remain in a trading range of $53 - $56 by June expiration. If the stock is trading under $55 by June expiration, we'll have taken in an uncalled return of 33% and we'll then look to sell the July calls.

Trade Details:
[private_monthly]

BTO 6 WMT Sep11 55 Calls
STO -6 WMT Jun11 55 Calls
for a net debit of $0.98 per contract

Requirements

Cost/Proceeds $588.00
Option Requirement $0.00
Total Requirements $588.00
Estimated Commission $15.00

[/private_monthly]

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