Stock / Symbol: [private_monthly]Broadcom / BRCM [/private_monthly]
Option Strategy: diagonal call spread
Trade entry date: Feb 24
Price at trade entry: $40.56
Price at this adjustment: $35.50
Adjustment: [private_monthly]BRCM[/private_monthly] is down on it's earnings announcement but we don't see it going much lower than $35; so we're going to close out our protective put here. With a rebound, we'll look to sell some near term calls to further lower our cost basis.
Trade Details:
[private_monthly]
STC 2 BRCM May11 35 Puts
for a net credit of $0.80 per contract
[/private_monthly]
Max Risk: $983 (adjusted from $934)
Max Reward: unlimited
Profit Range: $49.83 + by Jan 2012 expiration
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