Trade Adjustment : calendar call spread w/ protective call

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: $39.10

Current Position:[private_monthly]

Long 2 FCX Feb12 40 Calls
at a cost of $1.76 per contract
+
Long 1 FCX Jan12 45 Call
at a cost of $3.13 per contract
[/private_monthly]

Adjustment: For those who opened this position on Sep 14, this trade is currently at about breakeven. The trade entered back in April is still down but it is making up some ground. With the recent surge by this stock, we're going to sell some DecWk2 40 calls to further lower our cost basis. We'll look to close this trade next friday with [private_monthly]FCX[/private_monthly] trading at or higher than $39

Adjustment Details:
[private_monthly]
STO -2 FCX DecWk2 40 Calls
for a net credit of $0.64 per contract
[/private_monthly]

Risk Profile (for position entered Sep 14)
Max Risk: $540 (adjusted down from $665)
Max Profit: $140 @ $40 for a 25% return by Dec 9
Profit Range: $38.10 +

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