Stock / Symbol: Nabors Industries / NBR
Option Strategy: converted to diagonal call spread
Trade entry date: Apr 4
Price at trade entry: $16.60
Price at Jul 31 adjustment / new entry: $14.50
Price at this post: $16.10
Current Position:[/private_monthly]
Long 5 NBR Mar13 15 calls
if in from Apr 4 trade entry, have an effective cost of $2.85 per contract
if in on Jul 31 trade entry, have a cost of $1.97 per contract
+
Short -5 NBR Sep12 17 calls
at a credit of $0.20 per contract
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Reasoning / Adjustment: If you got in this trade on our Jul 31 adjustment, you're up at least 30%. If you never did get filled on the short Sep 17 calls, you're up 44%!!! So, for those of you in this situation, it's definitely time to take profits.
For those of us who entered the trade back on April 4, we've made back a big part of our losses on the trade. With NBR looking a bit toppy for the moment, we're going to close the position and then look to re-enter on a pull-back.
Closing Trade Details:
if you've got the Mar13 15 / Sep12 17 diagonal call spread, then:
STC 5 NBR Mar13 15 calls
BTC -5 NBR Sep12 17 calls
for a min net credit of $2.30 per contract (GTC, limit order). Current bid/ask is $2.35/$2.40. Min return on fill is 30%
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OR, if you're just long the Mar13 15 calls, then:
STC 5 NBR Mar13 15 calls
for a min credit of $2.70 per contract (GTC, limit order). Current bid/ask is $2.80/$2.85. Min return on fill is 37%
Max Risk: $1,325 (originally $465)
Max Reward: $275 or 20% by Sep 21
Profit Range: $16.15 to $19.70 + by Sep 21
Suggested Upside Stop @: $18.50
Realized Profit/Loss on Fill for Jul 31 entry: $265 or 30%
Realized Profit/Loss on Fill for Apr 4 entry: ($100)
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