Stock / Symbol: [private_monthly]Johnson & Johnson / JNJ[/private_monthly]
Price at trade post: $65.70
Option Strategy: calendar call spread
Reasoning: We going back to [private_monthly]JNJ[/private_monthly], which does not historically have drastic moves, making it an ideal calendar spread candidate. We're using weekly options here, with the intent on this being just a 7 day trade.
Trade Details : [private_monthly]
BTO 2 JNJ Apr12 65 Calls
STO 2 JNJ NovWk1 65 Calls
for a net debit of $2.20 per contract (day order, limit order)
[/private_monthly]
Requirements
Cost/Proceeds: $440
Option Requirement: $0
Total Requirements: $440
Estimated Commission: $12.95
Max Risk: $440
Profit Range: $63.70 – 66.20 (Oct exp)
Max Profit: $115 or 26% @ $65 by Nov 4
Suggested Downside Stop: NA
Suggested Upside Stop: @ $68
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