Stock / Symbol: [private_monthly]Pepsi / PEP [/private_monthly]
Option Strategy: calendar call spread
Price at trade post: $64.62
Price at Apr 7 adjustment: $65.72
Price at this adjustment: $68.89
Adjustment: It looks like [private_monthly]PEP[/private_monthly] will pull back to our target price of $67.50 by May expiration, but we're going to add some out of the money June calls here to allow up to participate in a further upside move.
Trade Details:
[private_monthly]
BTO 6 PEP Jun11 72.5 Calls
for a net debit of $0.14 per contract
[/private_monthly]
Existing Position:
[private_monthly]
Short 6 PEP May11 67.5 Calls
Long 6 PEP Jul11 67.5 Calls
[/private_monthly]
Max Risk: $312
Max Reward: unlimited
Profit Range: $65.07 +
Chart:
[private_monthly]
Flash Player 9 or higher is required to view the chart Click here to download Flash Player now[/private_monthly]
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