Closing Trade : EXC double calendar call spread

Stock / Symbol: [private_monthly]Exelon / EXC[/private_monthly]
Option Strategy: double calendar call spread
Price at trade entry: $42.97 & $42.00
Price at this post: $43.50

Reasoning: With our short 42 and 43 strike calls set to expire in the money, we're going to close out our position here for a bit of a loss.

Trade Details:

STC 4 EXC Oct11 42 Calls
BTC 4 EXC Sep11 42 Calls
for a net credit of $0.55 per contract (day order, limit order)

then,
STC 4 EXC Oct11 43 Calls
BTC 4 EXC Sep11 43 Calls
for a net credit of $0.80 per contract (day order, limit order)

Max Risk: $624
Profit Range: $41.40 - $43.50
Max Reward: $180 or 28.85% @ 42 - 43 by Sep11 exp
Suggested downside stop: $41.40
Suggested upside stop: $43.50
Realized Profit / Loss upon fill: ($80)

[/private_monthly]
Non-members, click here for access

Speak Your Mind

*