Stock / Symbol: United States Oil Fund / USO
Trade entry date: Aug 12
Price at trade post: $33.57
Option Strategy: diagonal call spread
Reasoning: Our trade on USO has played out perfectly for us; as it now sits right at $34, which is what we needed for maximum return on the trade. We're going to close out the trade here for about a 34% gain in just over a month's time.
Trade Details:
STC 2 USO Mar12 30 Calls
BTC -2 USO Sep11 34 Calls
for a net credit of $6.10 per contract
Max Risk: $910
Max Reward: $356 or 39% with USO @ $34 by Sep 2011 expiration
Profit Range: $31.30 +
Realized Profit / Loss upon fill: $310 or 34% (pre - commission)
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