Stock / Symbol: [private_monthly]Yum Brands / YUM [/private_monthly]
Price at trade post: $55.50
Option Strategy: butterfly call spread
Reasoning: With earnings due out tomorrow afternoon, we are anticipating that [private_monthly]YUM [/private_monthly] will have at least a 3% move (either up or down) from it's current price. This butterfly call spread puts us in a good position to profit from this anticipated move.
Max Risk: $145
Max Reward: $355 or 244% by Jul 15th
Profit Range: $0 - $53.48 & $56.52 +
Max Profit at: $0 - $50 & $60 + by Jul 15th
Trade Details:
[private_monthly]
STO -1 YUM Jul11 50 Call
BTO 2 YUM Jul11 55 Call
STO -1 YUM Jul11 60 Call
for a net credit of $3.55 per contract
Requirements:
Cost/Proceeds ($355.00)
Option Requirement $500.00
Total Requirements $145.00
Estimated Commission $12.95
[/private_monthly]
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