Stock / Symbol: [private_monthly]Altria Group / MO [/private_monthly]
Option Strategy: diagonal call spread
Date of trade entry: Feb 1
Price at trade entry: $23.61
Price at 2nd adjustment: $25.40
Price at this adjustment: $25.07
Adjustment: Our short 24 strike call was assigned so we're purchasing back the 400 shares. We'll pay for this by also selling the Jan 22.5 strike calls. We'll hang on to the April 26 calls.
Trade Adjustment:
[private_monthly]
Buy to cover 400 MO
for a net debit of $25.00 per share
then
Sell 4 MO Jan12 22.5 Calls
for a net credit of $2.95 per contract
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Remaining position:
[private_monthly]
Long 4 MO Apr 26 Calls
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Max Risk: $48 (adjusted from $668)
Max Reward: unlimited
Profit Range: $26.12 +
Chart:
[private_monthly]
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