Stock / Symbol: [private_monthly]Walgreen Co/ WAG[/private_monthly]
Option Strategy: calendar call spread
Trade entry date: Jun 7
Price at trade entry: $43.29
Price at this post: $44.77
Current position: [private_monthly]
Long 3 WAG Oct11 44 Calls
Short -3 WAG Jun11 44 Calls
[/private_monthly]
Adjustment: The [private_monthly]WAG[/private_monthly] calendar spread has performed nicely as we're up 21.62% in just 9 trading days. You may close the position here or roll the June calls into July calls. It's always sound to take profits when you can but we like the looks of the risk graph with the short July calls. Do keep in mind that if you choose to stay in this trade with us, [private_monthly]WAG[/private_monthly] does report earnings next Tuesday before market open.
Trade Details:
[private_monthly]
BTC -3 WAG Jun11 44 Calls
STO 3 WAG Jul11 44 Calls
for a net credit of $1.07 per contract
[/private_monthly]
Max Risk: $234 (adjusted down from $549)
Max Reward: $575 or 145% by Jul 2011 expiration
Profit Range: $39 - $50.55
Max Profit at: $44 by Jul 2011 expiration
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