Stock / Symbol: [private_monthly] Williams-Sonoma / WSM [/private_monthly]
Price at trade post: $32.70
Trade as posted on Nov 23:
Buy 2 WSM Feb11 33 Call @ $2.25 = $450.00
Sell -2 WSM Dec10 35 Call @ $0.40 = ($80.00)
for a net debit of $1.85 per contract
Adjustment: Well, we were a little too right about the strength of this stock. Yesterday, we didn't get filled at our desired entry of $1.85 per contract. If you did get in this position yesterday, congratulations, you're up nicely today! For our account, we're going to switch this trade into an in the money call spread. To follow are the detials.
Option Strategy: call spread
Max Risk: $660
Max Reward: $240 or 36% by January expiration
Profit Range: $32.20+
Max Reward Price: $33 at January expiration
Trade Details:[private_monthly]
Buy 3 WSM Jan11 30 Call @ $4.50 = $1,350.00
Sell -3 WSM Jan11 33 Call @ $2.30 = ($690.00)
Requirements
Cost/Proceeds $660.00
Option Requirement $0.00
Total Requirements $660.00
Estimated Commission $12.95
[private_monthly]
Chart:
[private_monthly]
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