Stock / Symbol: American Express / AXP
Option Strategy: calendar call spread w/ protective call
Trade entry date: Aug 15th
Price at trade entry: $45.87
Price at this post: $48.38
Current Position:
Long 2 AXP Jan12 45 Calls
Long 2 AXP Jan12 55 Calls
Short 2 AXP AugWk4 45 Calls
for an effective cost of $3.47per contract
Reasoning: AXP has performed nicely for us. With our short 45 weekly calls well in the money, we're going to close the entire position here for a 35% return in under 2 weeks time.
Closing Trade Details:
STC 2 AXP Jan12 45 Calls
BTC 2 AXP AugWk4 45 (exp 8/26) Calls
STC 2 AXP Jan12 55 Calls
for a net credit of $4.69 per contract
Max Risk: $694
Profit Range: $43.80 +
Realized Profit / Loss upon fill: $244 or 35%
Non-members, click here for access
Speak Your Mind