Stock / Symbol: [private_monthly]Abercrombie & Fitch / ANF[/private_monthly]
Price at trade opening: $45.14
Option Strategy: butterfly call spread
Max Risk: $460
Max Reward: $40
Profit Range: $0 - 44.08 & 45.92 +
Max Profit at: $0 - $44 & $46 +
Reasoning: This company is reporting earnings this afternoon and we expect that the stock will move up or down more than 2.5%. Make sure you use a limit order for a credit of at least $0.40.
Note: our trading account for theOptionWiz is maxed out here so we'll just be paper trading this one.
Trade Details:[private_monthly]
Sell -5 ANF Nov10 44 Call $2.25 ($1,125.00)
Buy 10 ANF Nov10 45 Call $1.69 $1,690.00
Sell -5 ANF Nov10 46 Call $1.21 ($605.00)
at a limit order of $0.40 credit
Requirements:
Cost/Proceeds ($40.00) Net Credit
Option Requirement $500.00
Total Requirements $460.00
Estimated Commission $25.00
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Chart:[private_monthly]
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