Stock / Symbol: [private_monthly]Pan American Silver / PAAS [/private_monthly]
Option Strategy: diagonal call spread
Trade entry date: March 18th
Price at trade entry: $34.81
Price at this adjustment: $33.58
Current Position:[private_monthly]
Long 2 PAAS Oct11 33 Calls
[/private_monthly]
Adjustment: with [private_monthly] PAAS[/private_monthly] showing signs of life again, we're going to sell some calls here to lower our cost basis.
Trade Details:[private_monthly]
STO 2 PAAS Aug11 36 Calls
for a net credit of $0.75 per contract (GTC, limit order)
[/private_monthly]
Max Risk: $820
Max Reward: $32 or 3.9% by Aug expiration
Profit Range: $35.80 - $36.70 by Aug expiration
Max Profit at: $36
Non-members, click here for access
Speak Your Mind