Closing Trade : KO double calendar call spread

Stock / Symbol: [private_monthly]Coca-Cola Company / KO [/private_monthly]

Option Strategy: double calendar call spread
Trade entry date: Nov 3
Price at trade entry: $68.66
Price at this post: $68.20

Position:
Long 2 KO Feb12 67.5 Calls
Long 2 KO Feb12 70 Calls
Short 2 KO NovWk2 67.5 Calls
Short 2 KO NovWk2 70 Calls
at a net cost of $3.35 per contract

Reasoning:This trade was constructed as a one week trade with a maximum yield of 9.7%. With KO trading over $67.50, we're looking to close out the trade for a profit. We are using a day order.

Trade Details:
STC 2 KO Feb12 67.5 Calls
BTC -2 KO NovWk2 67.5 Calls
STC 2 KO Feb12 70 Calls
BTC- 2 KO NovWk2 70 Calls
for a net credit of $3.65 per contract (day order, limit order)

Or, if your broker will not let you enter in a double calendar at once, break it up into 2 calendar spreads as follows:

STC 2 KO Feb12 67.5 Calls
BTC -2 KO NovWk2 67.5 Calls
for a net credit of $2.15 (day order, limit order)

STC 2 KO Feb12 70 Calls
BTC -2 KO NovWk2 70 Calls
for a net credit of $1.50 per contract (day order, limit order)

**NOTE: if breaking up into 2 calendars, you will likely need to adjust each credit amount such that the total = $3.65 per contract

Max Risk: $670
Max Reward: $65 or 9.70% @ $67.5 - $70 by Nov 11th
Profit Range: $67.10 - $70.40 by Nov 11th
Profit / Loss upon fill: $60 or 8.96% (pre-commission)

[/private_monthly]

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