Trade Adjustment : MO calendar spread

Stock / Symbol: Altria Group / MO

Option Strategy: calendar call spread
Price at trade entry: $28.39
Price at this post: $29.05

Adjustment: [private_monthly] We're going to close out our original calendar trade here at a about a $160 loss. Then, we're going to sell Mar12 29 calls against the 2 Jun12 28 calls we purchased to protect the position against the upside. You cannot win them all, but for a trade that went against us, the ultimate loss should be minimal. [/private_monthly]

Trade Adjustment:

STC 10 MO Mar12 28 Calls
BTC -10 MO Dec11 28 Calls
for a net credit of $0.38 per contract
STO -2 MO Mar12 29 Calls
for a credit of $0.81 per contract

Max Risk: $170 (decreased from $864)
Max Reward: ($40) by Dec 16
Max Profit at: $29 on Mar 16
Profit Range: $27.85 +


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