Stock / Symbol: [private_monthly]Las Vegas Sands / LVS[/private_monthly]
Price at time of trade entry: $41
Option Strategy: calendar call spread
Reasoning: Our premise that [private_monthly]LVS[/private_monthly] would move higher was right but we were wrong on the timing. This stock crushed earnings and popped up big. So, we're going to adjust our position by ratcheting up the strike price on our calendar spread from 41 to 52.5 and and move out to December for the short call.
Trade Details:[private_monthly]
STC 2 LVS Mar11 41 Call @ $12.50 = $2,500 Credit
BTC -2 LVS Nov10 41 Call @ $9.90 = $1,980 Debit
for a net Credit of: $520
Net Profit / Loss on trade: ($134)
then,
Buy 2 LVS Mar11 52.5 Call $6.10 $1,220.00 Debit
Sell -2 LVS Dec10 52.5 Call $2.92 $584.00 Credit
Requirements:
Cost/Proceeds $636.00
Option Requirement $0.00
Total Requirements $636.00
Estimated Commission $12.95
[/private_monthly]
Max Risk: $636
Max Reward: $449 (at Dec expiration)
Max Called Return: 69%
Uncalled Return: 47%
Profit Range: $47.69 - 58.78 ( at Dec expiration)
Max Profit at: $52.50
Chart:[private_monthly]
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[/private_monthly]
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