Trade Adjustment : JNJ

Stock / Symbol: Johnson & Johnson / JNJ

Option Strategy: [private_monthly]tripple calendar call spread[/private_monthly]
Trade entry date: Mar 19
Price at trade entry: $65.17
Price at this adjustment: $63.64

Current Position:[private_monthly]

long 4 JNJ Jul12 62.5 Calls
short -4 JNJ Apr12 62.5 Calls
for a net debit of $0.87 per contract
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

Adjustment: The Apr12 65 and 67.5 calls we sold will expire worthless today. We're going to sell the Jul12 67.5 calls here & roll the ITM Apr12 62.5 calls to May expiration. This adjustment gives us protection down to $62.50 and allows us to make some money back with a rebound in the stock. We're adjusting our stop to $62.20. [/private_monthly]

Trade Adjustment Details:[private_monthly]
STC 5 JNJ Jul12 67.50 Calls
for a credit of $0.22 per contract

BTC -4 JNJ Apr12 62.50 Calls
STO -4 JNJ May12 62.50 Calls
for a net credit of $0.36 per contract (be sure to get filled today, so adjust your ask price down if you don't get filled by 3pm EST. day order, limit order)

NOTE: In order to sell the Jul12 67.5 calls, your broker may require you to buy back the Apr12 67.5 calls due to margin requirements.

Max Risk: $1,192 (480+360+352)
Max Reward: unlimited by May 18
Profit Range: @ $66.60+ on May 18
Suggested downside stop: $62.20

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