Closing Trade : INFY

Stock / Symbol: Infosys / INFY

Option Strategy: [private_monthly]double calendar call spread[/private_monthly]
Trade entry date: Apr 11
Price at trade entry: 56.51
Price at this post: 47.15

Reasoning: While the INFY beat earnings estimates, they provided poor guidance, causing the stock to gap down. A painful reminder to get out of the way ahead of earnings. Rather than try to adjust, were just going to take the loss here and look for a new opportunity.[/private_monthly]

Closing Trade Details:

STC 3 INFY Jul12 55 calls
BTC -3 INFY Apr12 55 calls
for a net credit of $0.50 (day order, limit order)
STC 3 INFY Jul12 57.5 calls
BTC -3 INFY Apr12 57.5 calls
for a net credit of $0.25 per contract (day order, limit order)

Adjust ask price as necessary if not closed out by 3pm EST today.

Max Risk: $1050
Max Reward: $800 or 75% by Apr 20
Profit Range: $52 to $61 with max profit between $55 - $57.5 by Apr 20
Suggested Downside Stop @: $52
Suggested Upside Stop @: $61
Realized profit / loss upon fill: ($800)

Non-members, click here for access


  1. Robert Zimberg says:

    Why close out the short option and pay a commission? Most likely they will expire worthless.

    Where are all of the other comments?

  2. Robert, the reason to close is to avoid the capital requirements to cover the naked options.

Speak Your Mind