Stock / Symbol: [private_monthly]Agruim / AGU[/private_monthly]
Price at trade post: $91.86
Option Strategy: diagonal call spread
Max Risk: $760
Max Reward: $392 or 51.58% by Feb 2011 expiration
Profit Range: $89.82 +
Max Reward Price: $95 at Feb 2011 expiration
Reasoning: We like the fundamentals and technical positioning of this stock. We're using a diagonal call spread to give us some wiggle room just in case the stock pulls back here.
Trade Details:
[private_monthly]
Buy 1 AGU Apr11 85 Call @ $10.90 for $1,090.00
Sell -1 AGU Feb11 95 Call @ $3.30 for ($330.00)
for a net debit of $7.60 per contract
Requirements:
Cost/Proceeds $760.00
Option Requirement $0.00
Total Requirements $760.00
Estimated Commission $12.95
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Chart:
[private_monthly]
[/private_monthly]
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