Trade Adjustment : HAL

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:
Long 1 HAL Apr12 30 call
at an effective cost of $8.58 per contract

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.

Adjustment Details:
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%


Non-members, click here for access

Speak Your Mind