Stock / Symbol: [private_monthly]Walmart / WMT [/private_monthly]
Option Strategy: calendar call spread
Date of trade entry: May 26
Price at trade entry: $54.61
Price at this post: $53.56
Current Position:
[private_monthly]
Long 6 WMT Sep11 55 Calls @ effective cost basis of $0.86 per contract
[/private_monthly]
Adjustment: As [private_monthly]WMT[/private_monthly] closed under $55 last Friday, our short July calls expired worthless, giving us an uncalled return of 14%. In addition to now selling the Aug 55 calls, we're going to add Sep 57.5 protective calls to allow for us to be profitable on the trade should the stock close over $56 by Aug expiration.
Trade Details:
[private_monthly]
STO -6 WMT Aug11 55 Calls
BTO 6 WMT Sep11 57.5 Calls
for a net credit of $0.14 per contract (GTC, limit order)
[/private_monthly]
Max Risk: $432 (adjusted down from $588 originally)
Max Reward: unlimited
Profit Range: $54.13 +
Uncalled Return: 16%
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