Trade Update : BTU

Stock / Symbol: Peabody Energy Corp / BTU

Option Strategy: iron condor
Trade entry date: May 18
Price at trade entry: $23.98
Price at this update: $23.80

Current Position:
Long 7 BTU Jun12 20 puts
Short -7 BTU Jun12 21 puts
Short -7 BTU Jun12 31 calls
Long 7 BTU Jun12 32 calls
at a net credit of $0.20 per contract

Analysis: It's always fun to make a double digit return on a stock that ends up pretty much at the same price when you entered the trade. With BTU set to finish comfortably within our profit range of $21 to $31, we're able to allow this iron condor to expire worthless today for the full 25% yield.

Max Risk: $560
Max Reward: $140 or 25% by Jun 15
Profit Range: between $21 and $31 by Jun 15
Suggested Downside Stop @ $21
Suggested Upside Stop @ $31
Realized profit / loss: $140 or 25% (pre-commission)

Non-members, click here for access

Speak Your Mind