Stock / Symbol: [private_monthly]Zions Bancorp / ZION [/private_monthly]
Option Strategy: diagonal call spread --> calendar spread
Entry date: Oct 6th; Price at trade entry: $21.94
Adjustment: we're getting worried about this stock near term so we're going to modify this trade into a calendar spread to help lessen our risk.
Current Position:
Long 2 Jan12 20 Calls @ $4.83 (current value is $2.90)
Adjusted Cost Basis: $3.53 ( with sale of 2 Nov 22 Calls ($1.30 ea.) )
Cash generated: $260
Uncalled return: 27%
Trade:
STO (Sell To Open) 2 Dec 20 Calls @ $0.53
Max Risk (adjusted): $600; Max Reward (adjusted): $83 @ 20 (Dec 17th); Max Return: 13.8%; Uncalled Return: 15%; Profit Range: $19.18 - 21.29 (on Dec 17th)
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