Closing Trade : INTC butterfly

Stock / Symbol: [private_monthly]Intel / INTC [/private_monthly]

Option Strategy: butterfly call spread
Price at trade entry: $23.71
Price at this post: $23.58

Reasoning: INTC didn't move up to $24 as we anticipated. As our long 25 strike calls will definitely expire worthless, we just need to Sell To Close our long 23's and buy back the short calls just in case the stock does finish the day over $24. We're looking to close the trade at a slight gain.

Trade Details:

STC 4 INTC Dec11 23 Calls
BTC -8 INTC Dec11 24 Calls
for a net credit of $0.65 per contract (day order / limit order)

Position to Expire Worthless:
4 INTC Dec11 25 Calls

Max Risk: $216
Max Reward: $180 or 84% @ $24 by Dec 16
Profit Range: $23.60 - $24.40
Profit / Loss upon fill: $44 or 20% (pre-commission)


Non-members, click here for access

Speak Your Mind