Trade Adjustment

Stock / Symbol: [private_monthly]Apache / APA [/private_monthly]
Original Option Strategy: diagonal call spread

Entry date: Jan 14th
Price at time of trade entry: $124.57
Price at this adjustment: $118.75

Current Position:[private_monthly]
Long 1 APA Jul 125 Call

[/private_monthly]
Adjustment: [private_monthly]After factoring in the calls we've sold + protective puts we've purchased, we've lowered our cost basis in this trade down to $5.91 per contract from our original cost of $9.39 for our long calls. However, it does not look like APA will reach $131 by July expiration, which is where we'd need the stock to be in order to break even on the trade. So, we're going to roll our long July 125 call into a July/Oct 125 strike calendar call spread.

For those of you not currently in the trade, you may consider entering the following calendar call spread.
[/private_monthly]
Trade Details (for current position):[private_monthly]

STC 1 APA July 130 Call
for a net credit of $1.51 per contract

then (new position),

BTO 1 APA Oct11 125 Call
STO -1 APA Jul11 125 Call
for a net debit of $4.12 per contract

Requirements:
Cost/Proceeds $412.00
Option Requirement $0.00
Total Requirements $412.00
Estimated Commission $12.95

Risk/Reward for those holding the existing position:
Max Risk: $868 (adjusted up from $578)
Max Reward: ($60) or -7% (with stock at $125 by Jul exp)

Risk/Reward for entering position here:
Max Risk: $420
Max Reward: $386.40 or 91% (with stock at $125 by Jul exp)
Profit Range: $116.40 - $136 (at Jul expiration)
[/private_monthly]