Stock / Symbol: [private_monthly]Walmart / WMT [/private_monthly]
Option Strategy: diagonal call spread
Date of trade entry: May 26 & Aug 8
Price at trade entry: $54.61 / $49.16
Price at this post: $53
Current Position:
Long 1 WMT Jan12 50 Call
Short -1 WMT Sep11 52.5 Call
Also, if you've been in the trade since May 26th, the you're also:
Long 6 WMT Sep11 57.5 Calls
For those who entered the trade on Aug 8th: This trade is up 90% and you'll need to close it out here as the short calls are in the money.
For those in the trade since May 26th: As our short 52.50 calls are in the money, we're going to roll them into Oct 52.50 calls. The long Sep 57.5 calls will expire worthless today.
Closing Trade Details (for Aug 8th entry):
STC 1 WMT Jan12 50 Call
BTC-1 WMT Sep11 52.5 Call
for a net credit of $3.74 per contract (day order, limit order)
Trade Adjustment Details (for May 26th entry):
[private_monthly]
BTC -1 WMT Sep11 52.5 Call
STO -1 WMT Oct11 52.5 Call
for a net credit of $0.92 per contract (day order, limit order)
[/private_monthly]
Risk profile for Aug 8 position:
Max Risk: $197
Max Reward: $226 at $52.50 by Sep
Profit Range: $48.42 +
Realized Profit / Loss upon fill: $178 or 90% return (pre - commission)
[private_monthly]
Risk profile for May 26 position:
Max Risk: $496 (adjusted down from $589)
Max Reward: ($130) at $52.50 by Oct exp
Profit Range: NA
[/private_monthly]
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