Stock / Symbol: Halliburton / HAL
Option Strategy: [private_monthly]diagonal call spread[/private_monthly]
Trade entry date: Nov 8
Price at trade entry: $38.26
Price at this post: $36.02
Current Position:
[private_monthly]
Long 1 HAL Apr12 30 call
at an effective cost of $8.58 per contract
[/private_monthly]
Adjustment: With earnings due out Monday morning, we're [private_monthly]selling a Feb12 call against our position to lower our cost basis and put us in a position to close this trade out with HAL trading at or over $38 by Feb expiration. As this stock is down 6% since we entered the trade, we're looking to close out this trade at break even to a slight profit.
[/private_monthly]
Adjustment Details:
[private_monthly]
STO -1 HAL Feb12 39 call
for a credit of $0.51 per contract (day order, limit order)
Max Risk: $820 (adjusted down from $928)
Max Profit: @ $96 or 11.7% @ $39 by Feb 17
Profit Range: $38+ by Feb 17
Uncalled Return: 4.4%
[/private_monthly]
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