Stock / Symbol: [private_monthly]Apache / APA [/private_monthly]
Option Strategy: diagonal call spread
Entry date: Jan 14th
Price at time of trade entry: $124.57
Price at this adjustment: $126
Current Position:[private_monthly]
Long 1 APA Jul 125 Call
[/private_monthly]
Adjustment: After factoring in the calls we've sold + protective puts we've purchased, we've lowered our cost basis in this trade down to $7.28 per contract from our original cost of $9.39 for our long calls. With earnings due out tomorrow morning, we're going to hedge by selling a 130 strike May call against our position.
Trade Details:[private_monthly]
STO 1 APA May 130 Call
for a net credit of $1.50 per contract
[/private_monthly]
Max Risk: $578
Max Reward: $217 or 37% (with stock at $130 by May exp)
Profit Range: $126.50 - $141 (at May expiration)
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