Stock / Symbol: [private_monthly]Johnson & Johnson / JNJ[/private_monthly]
Option Strategy: broken wing butterfly
Trade entry date: Dec 30
Price at trade entry: $65.54
Price at this post: $65.22
Reasoning: Since our entry, the stock has moved just 0.50% but our position is now up about 29%. You can hold out till Friday for the full yield of 56% with the stock at $65, but we're going to take profits here.
Trade Details :
STC 4 JNJ Jan12 62.5 Calls
BTC -6 JNJ Jan12 65 Calls
STC 2 JNJ Jan12 67.5 Calls
for a net credit of $4.00 per contract (GTC, limit order)
Max Risk: $616
Profit Range: $64.05 – 66.90 (Jan exp)
Max Profit: $350 or 56% @ $65 by Jan exp
Realized Profit / Loss upon fill: $184 or 29.87% (pre-commission)
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