Closing Trade : EMC

Stock / Symbol: E M C Corp / EMC

Option Strategy: vertical call spread
Trade entry date: May 25
Price at trade entry: $24.28
Price at this post: $25

Reasoning: We're currently up about 25% on this trade as we entered the trade for $0.50 and can sell now for $0.63. While we still like the name, EMC will likely trade down with the market. So, we're going to close the trade here to ensure a profitable trade.

Trade Details:

STC 4 EMC Jul12 24 calls
BTC -4 EMC Jul12 25 calls

for a min net credit of $0.63 per contract (current bid $0.62 / ask $0.66) (GTC, limit order).

Max Risk: $200
Max Reward: $200 or 100% by Jul 21
Profit Range: $24.50 + by Jul 21
Suggested Downside Stop @ $23
Profit / Loss upon fill: $52 or 26% (pre-commission)

Non-members, click here for access

Speak Your Mind