Stock / Symbol: [private_monthly]Best Buy / BBY[/private_monthly]
Price at trade opening: $45.18
Price at trade adjustment: $41.93
Reasoning: [private_monthly]BBY[/private_monthly] isn't playing nice. We're going to adjust this trade by buying back the short call as we've pretty much pulled all of the premium out of it. We'll simultaneously sell a Dec 45 strike call to further lower the cost basis of this trade. This new structure converts this into a calendar spread.
New Option Strategy: calendar call spread
Max Risk: $730 (down from $778)
Max Reward: $162 or 22% by December expiration
Profit Range: $43.27 - $47.28
Max Reward Price: $45 at December expiration
Uncalled Return: 6.65%
Trade Details:[private_monthly]
BTC (buy) -2 BBY Dec10 50 Call @ $0.02
STO (sell) 2 BBY Dec10 45 Call @ $0.27
for a net credit of $0.25
Estimated Commission $12.95
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Chart:
[private_monthly]
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