New Trade : JNJ

Stock / Symbol: Johnson & Johnson / JNJ

Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Price at trade post: $65.20

Reasoning: Going back to our old faithful, Johnson & Johnson. [private_monthly]JNJ continues to trade right around 65, so we're going with a 65 strike calendar call spread. If we need to adjust, we'll add another calendar either above or below this one. We'll look to exit the trade once we're up about 20%.[/private_monthly]

Trade Details:[private_monthly]

BTO 5 JNJ Jul12 65 Calls
STO -5 JNJ Apr12 65 Calls
for a net debit of $0.93 per contract (day order, limit order)

Requirements:
Cost/Proceeds $465
Option Requirement $0
Total Requirements $465
Estimated Commission $12.95
[/private_monthly]

Max Risk: $465
Max Reward: $250 or 53% by Apr 20
Profit Range: $63.65 to $66.20 on Apr 20
Max Profit at: $65
Suggested upside stop: NA (we'll add 67.5 calendar)
Suggested downside stop: NA (we'll add 62.5 calendar)

[/private_monthly]

Non-members, click here