Stock / Symbol: [private_monthly]Freeport-McMoran / FCX [/private_monthly]
Option Strategy: calendar call spread w/ protective call
Trade entry dates: Apr 19th & Sep 14
Prices at entry points: $51.68 & $41.53
Price at this post: $36.08
Current Position:[private_monthly]
Long 2 FCX Feb12 40 Calls
Short 2 FCX Oct11 40 Calls
at a cost of $2.40 per contract
+
Long 1 FCX Jan12 45 Call
at a cost of $3.13 per contract
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Adjustment:[private_monthly]
We're rolling the short calls over to Nov 40 strike calls now to take advantage of the stock up over 3.5% on the day. Note: if you prefer, you can write the Nov 40 calls on Monday but you risk that the stock will be lower at the time.
[/private_monthly]
Trade Details:[private_monthly]
BTC 2 FCX Oct11 40 Calls
STO 2 FCX Nov11 40 Calls
for a net credit of $0.71 per contract (day order, limit order)
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Risk Profile (not including previous position)
Max Risk: $657
Max Profit: $240 @ $40 for a 36% return by Nov11 exp
Profit Range: $38.10 +
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