Position Update

Stock / Symbol: [private_monthly]Apache / APA [/private_monthly]
Original Option Strategy: diagonal call spread

Entry date: Jan 14th
Price at time of trade entry: $124.57
Price at time of this update: $125.01

Current Position:[private_monthly]
Long 1 APA Jul 125 Call for effective cost basis of $8.78 per contract
[/private_monthly]

Current Position Value: $7.05 per contract

Update: While we're currently down on the trade, we like the way [private_monthly]APA's[/private_monthly] chart is looking. We're going to see if we can ride the stock up to the 128 level before either closing out the trade or writing the Aug 130 call. If you'd rather play this trade a bit safer, you could sell 1 Aug11 130 call for every long call you hold right now. If you do this here, your max profit will be about $1.50 per contract with the stock closing at $130 by Aug expiration. Just keep in mind that your upside breakeven is at $135.50 by Aug expiration.

Current Risk/Reward Scenario:
Max Risk: $878
Max Reward: unlimited
Breakeven at: $133.78 by Oct expiration