Stock / Symbol:Walmart / WMT
Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Trade entry date: Mar 9
Price at trade entry: $60.18
Price at this adjustment: $59.04
Current Position:[private_monthly]
Long 5 WMT Jun12 60 Calls
Short -5 WMT AprWk4 62.5 Calls
at an effective cost of $2.72 per contract[/private_monthly]
Adjustment: [private_monthly]Well, Wal-Mart's bribery scandal sure threw this trade for a loop this week. We'll end up taking a loss on the trade, we're just trying to capture back some losses before we close it. We're rolling the short 62.5's to next week's 60's. Why roll? Our commission to roll is the same as if we wait for the 62.5's to expire and then write the 60's next week; and it takes away the unknown of where WMT may be trading on Monday.[/private_monthly]
Trade Adjustment Details:[private_monthly]
BTC -5 WMT AprWK4 62.5 Calls
STO -5 WMT MayWk412 60 Calls
for a min net credit of $0.19 per contract (current bid/ask at $0.19/$0.21, day order, limit order)
Max Risk: $1265
Max Reward: NA (salvage)
Suggested downside stop: $58
Suggested upside stop: $62
[/private_monthly]
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