Stock / Symbol: McDonalds / MCD
Option Strategy: [private_monthly]calendar spread[/private_monthly]
Trade entry date: Apr 25
Price at trade entry: $94.95
Price at 1st adjustment: $97.85
Price at this post: $91.48
Current Position:
[private_monthly]
Long 5 MCD Jun12 95 calls
at a net cost of $0.60 per contract
+
Long 5 MCD Jun12 97.5 calls
at a net cost of $0.59 per contract
[/private_monthly]
Reasoning: MCD didn't recover back to $93 as anticipated. Closing out here while there's still some premium left in these way OTM options.[/private_monthly]
Closing Trade Details:
[private_monthly]
STC 5 MCD Jun12 95 calls (at the market)
+
STC 5 MCD Jun12 97.5 calls (at the market)
Max Risk: $600
Max Reward: $200 or 33% by May 18
Profit Range: $94 to $98.20 by May 18
Max Profit at: between $95 and $97.50
Profit / Loss Upon fill: ($492) (post-commission)
[/private_monthly]
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