Stock / Symbol: Verifone Systems / PAY
Option Strategy: calendar call spread
Price at trade post: $41.81
Price at trade close: $49.29
Max Risk: $442
Realized Reward: $103 or 23% (before commissions)
Reasoning: On a down day in the market, PAY is up really big. We closed the trade out here to lock in profits and protect against the stock trading over $52 by March expiration, which is our upside breakeven point.
Closing Trade Details:
STC 1 PAY Jan12 45 Call
BTC -1 PAY Mar11 45 Call
for a net credit of $5.45 per contract
Chart:
Non-members, click here for access
Speak Your Mind