Stock / Symbol: [private_monthly]Walt Disney Co / DIS[/private_monthly]
[private_monthly]
Option Strategy: calendar call spread
Trade entry date: Jun 7
Price at trade entry: $39.82
Price at this post: $31.93
Adjustment: We're going to roll our long Jan12 40 calls in to Jan12 33 calls. We are still short the Aug11 40 calls but they will most certainly expire worthless. Once we see a bounce in the stock, we'll look to sell additional near term calls.
Trade Details:
[private_monthly]
STC 2 DIS Jan12 40 Calls
BTO 2 DIS Jan12 33 Calls
for a net debit of $1.95 per contract
Max Risk: $742 (adjusted up from $352)
Max Reward: unlimited (assumes Aug11 40 calls expire worthless)
Profit Range: $36.71 + at Jan12 expiration
[/private_monthly]
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