Stock Symbol: [private_monthly]ZION[/private_monthly]
Option Strategy: diagonal call spread
Max Risk: $706
Called Return: 51% ($363)
Uncalled Return: 27%
Profit Range: $19.17 +
Reasoning: [private_monthly]Zions Bancorporation - ZION[/private_monthly] has very strong fundamentals and has found solid support at its 200 day moving average, giving it nice upside from here. If the stock closes over $22 on November expiration, we'll get called out for a 51% gain. If the stock closes under $22 Nov 19th, we'll look to sell another near term call option.
Trade Details:
[private_monthly]
Sell -2 ZION NOV10 22 CALL @ $1.32 ($264.00) Credit
Buy 2 ZION JAN12 20 CALL @ $4.85 $970.00
Requirements:
Cost/Proceeds: $706.00
Option Requirement: $0.00
Total Requirements: $706.00
Estimated Commission: $12.95
[/private_monthly]
Chart:
[private_monthly]
[/private_monthly]
Non-members, click here for access
Speak Your Mind