Stock / Symbol: Kellog / K
Option Strategy: [private_monthly]diagonal call spread[/private_monthly]
Trade entry date: Jan 6
Price at trade entry: $50.39
Price at this post: $51.55
Current Position : [private_monthly]
Long 3 K Jun12 47.5 Calls
Short -3 K Jan12 50 Calls
a a cost of $3.15 per contract
[/private_monthly]
Adjustment:[private_monthly] With K touching our upside stop at $51.50, we're going to adjust the trade by buying back one of the short 50 strike calls. This adjustment will enable us to participate in upside profits should the stock continue to rise. If by Jan 20th, K is not much higher than it's current level, we'll look to roll the short calls to February expiration to take in additional premium and lower our cost basis. [/private_monthly]
Trade Details : [private_monthly]
BTC -1 K Jan12 50 Call
for a net debit of $1.65 per contract (day order, limit order)
[/private_monthly]
Max Risk: $1,110 (increased from $945)
Profit Range: $53 + (Jan 20)
Max Profit: unlimited
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