Stock / Symbol: JDS Uniphase Corp / JDSU
Option Strategy: [private_monthly]vertical call spread[/private_monthly]
Price at trade post: $13.88
Reasoning: JDSU looks like it's ready to [private_monthly] jump up over $15 within a matter of weeks. This vertical call spread allows for a bit of a pullback in the stock and have the trade profitable, but it is designed for the stock to be trading just 12 cents higher than its current level by April expiration for full profitability.[/private_monthly]
Trade Details:[private_monthly]
BTO 5 JDSU Apr12 13 Calls
STO -5 JDSU Apr12 14 Calls
for a net debit of $0.68 per contract (day order, limit order)
Requirements:
Cost/Proceeds $340
Option Requirement $0
Total Requirements $340
Estimated Commission $12.95
[/private_monthly]
Max Risk: $340
Max Reward: $180 or 55% by Apr 20
Profit Range: $13.65+ on Apr 20
Max Profit at: $14+
Suggested downside stop: $12.50
[/private_monthly]
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