Stock / Symbol: [private_monthly]Anadarko Pete Corp / APC [/private_monthly]
Price at trade post: $82.58
Option Strategy: bear call spread
Reasoning: Fundamentally, [private_monthly]APC [/private_monthly] is worth just $36.46 a share and is technically over bought. The company announces earnings this afternoon, so we're going to take advantage of its volatility and sell some calls. This trade has a 90% probability of success.
Max Risk: $932
Max Reward: $68 or 7.29% by Aug 19th
Profit Range: $0 - $92.67
Max Profit at: $0 - $92.50
Trade Details:
[private_monthly]
STO -4 APC Aug11 92.5 Calls
BTO 4 APC Aug11 95 Calls
for a net credit of $0.17 per contract (day order, limit)
Requirements:
Cost/Proceeds ($68.00)
Option Requirement $1,000.00
Total Requirements $932.00
Estimated Commission $12.95
[/private_monthly]
Non-members, click here for access
Speak Your Mind