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: $39.60
Current Position:[private_monthly]
Long 2 FCX Feb12 40 Calls
Short 2 FCX DecWk2 40 Calls
at an effective cost of $1.15 per contract
+
Long 1 FCX Jan12 45 Call
at a cost of $3.13 per contract
[/private_monthly]
Closing Position Entered Sep 14: For those who entered this trade on Sep 14th, the position is up about 18% and it's time to take profits. If you like, you can just let the short calls expire worthless as long as FCX stays under $40 by today's close. If you entered the trade back in April, read below.
Closing Trade Details:
STC 2 FCX Feb12 40 Calls
BTC -2 FCX DecWk2 40 Calls
for a net credit of $2.96 per contract (day order, limit order)
+
STC 1 FCX Jan12 45 Call
for a credit of $0.54
[/private_monthly]
Risk Profile (for position entered Sep 14)
Max Risk: $543
Max Profit: $150 @ $40 for a 27% return by Dec 9
Profit Range: $38.60 +
Profit / Loss upon fill: $100 (pre-commission) or 18.4%
Adjustment For April 19 entry:[private_monthly]
We're rolling the short calls over to Dec11 40 strike calls now to take in further premium.
[/private_monthly]
Trade Adjustment Details:[private_monthly]
BTC -2 FCX DecWk2 40 Calls
STO -2 FCX Dec11 40 Calls
for a net credit of $0.74 per contract (day order, limit order)
[/private_monthly]
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