Stock / Symbol: [private_monthly]Corning / GLW[/private_monthly]
Price at trade post: $20.33
Option Strategy: call ratio backspread
Max Risk: $324
Max Reward: unlimited
Max Loss at: $21 by Jun expiration
Profit Range: $22.08 +
Reasoning: Strong fundamentals and a good looking chart. Normally, we'd put on a diagonal call spread but we're not comfortable with the inherent risk the structure has upon an earnings event. This co reports earnings next Wednesday. If the stock gets crushed on earnings, the most we can lose is $10 on the trade. Our price target is $24 by Jun expiration, which should yield us a triple digit return
Trade Details:
[private_monthly]
STO -3 GLW Jun11 20 Calls
BTO 6 GLW Jun11 21 Calls
for a net debit of $0.10 per contract
Requirements
Cost/Proceeds $10.00
Option Requirement $300.00
Total Requirements $310.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
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