Trade Adjustment : JNJ

Stock / Symbol: Johnson & Johnson / JNJ

Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Trade entry date: Mar 19
Price at trade entry: $65.17
Price at this adjustment: $63.81

Current Position:[private_monthly]

long 5 JNJ Jul12 65 Calls
short -5 JNJ Apr12 65 Calls
long 5 JNJ Jul12 67.5 Calls
short -5 JNJ Apr12 67.5 Calls
for a net debit of $1.68 per contract
[/private_monthly]

Reasoning: With JNJ trading below our downside breakeven price, we're going to [private_monthly]add a 62.5 strike calendar here. At this point, this trade won't be a winner, we're just adjusting to limit losses. [/private_monthly]

Trade Details:[private_monthly]

BTO 4 JNJ Jul12 62.50 Calls
STO -4 JNJ Apr12 62.50 Calls
for a net debit of $0.88 per contract (be sure to get filled today, so adjust your limit order up as necessary if you don't get filled. day order, limit order)

Requirements:
Cost/Proceeds $352
Option Requirement $0
Total Requirements $352
Estimated Commission $12.95
[/private_monthly]

Max Risk: $1,192 (480+360+352)
Max Reward: $25 by Apr 20
Profit Range: @ $65 on Apr 20
Max Profit at: $65
Suggested downside stop: $62
Suggested upside stop: $67

[/private_monthly]

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