Stock / Symbol: [private_monthly]United States Oil Fund / USO[/private_monthly]
Option Strategy: diagonal call spread
Price at trade opening: $37.40
Price at this adjustment: $36.25
Adjustment: The recent dip by[private_monthly] USO[/private_monthly] has squeezed most of the premium out of the call we sold so we're going to take advantage of this and close the short leg of this position here. Once [private_monthly] USO[/private_monthly] is back near the high end of its trading range, we'll look to sell another call against our long position.
Trade Details:
[private_monthly]
BTC -2 USO Feb11 40 Calls
for a net debit of $0.08 per contract
Remaining Position:
Long 2 USO Jul11 36 Calls @ $4.07
[/private_monthly]
Max Risk: $726 (adjusted)
Max Reward: unlimited (adjusted)
Profit Range: $39.63 + (adjusted)
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