Stock / Symbol: [private_monthly]Broadcom / BRCM [/private_monthly]
Original Option Strategy: diagonal call spread
Trade entry date: Feb 24
Price at trade entry: $40.56
Price at this adjustment: $36.40
Current Position:
[private_monthly]
Long 2 BRCM Jan12 40 Calls
at an effective cost basis of $4.85 per contract.
[/private_monthly]
Adjustment: With the Nasdaq up 13.7% and [private_monthly]BRCM[/private_monthly] up 13.2% in the past 7 trading days, we're going to sell some near term calls to further lower our cost basis.
Trade Details:
[private_monthly]
STO 2 BRCM Nov11 40 Calls
for a net credit of $0.68 per contract (GTC, limit order)
Max Risk: $836 (adjusted from $970)
Max Profit: ($300) @ $40 on Oct 21
[/private_monthly]
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