Stock / Symbol: [private_monthly]Walmart / WMT [/private_monthly]
Option Strategy: calendar call spread
Date of trade entry: May 26
Price at trade entry: $54.61
Price at this post: $49.44
Current Position:
[private_monthly]
Long 6 WMT Sep11 55 Calls
Short 6 WMT Aug11 55 Calls
Long 6 WMT Sep11 57.5 Calls
@ effective cost basis of $0.72 per contract
[/private_monthly]
Adjustment: We're going to roll the calendar portion the position into a longer term diagonal call spread. We'll leave the long Sep 57.5 calls in place but expect that they'll just expire worthless. Those of you not currently in this trade can consider entering into the new diagonal call spread.
Closing Trade Details:
[private_monthly]
STC 6 WMT Sep11 55 Calls
BTC -6 WMT Aug11 55 Calls
for a net credit of $0.10 per contract (GTC, limit order)
Opening Trade Details:
BTO 1 WMT Jan12 50 Call
STO -1 WMT Sep11 52.5 Call
for a net debit of $1.96 per contract (GTC, limit order)
Risk profile for open position:
Max Risk: $589 (adjusted up from $432 originally)
Max Reward: ($159) at $52.50 by Sep 16th
Profit Range: NA
Risk profile for those new to position:
Max Risk: $210
Max Reward: $226 at $52.50 by Sep
Profit Range: $48.42 +
[/private_monthly]
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