Stock / Symbol: Chesapeake Energy / CHK
Strategy: [private_monthly]bull put spread[/private_monthly]
Trade entry date: Nov 4
Price at trade entry: $27.02
Price at this adjustment: $21.20
Current Position: [private_monthly]
Short -3 Jan12 22.5 Puts
Long 3 Jan12 20 Puts
at a net credit of $0.36 per contract
[/private_monthly]
Adjustment: Looks like we're going to need to give CHK some more time to finish the trade over our short strike level, so we're going to roll our position to April expiration.
Trade Details: [private_monthly]
BTC -3 Jan12 22.5 Puts
STO -3 Apr12 23 Puts
STC 3 Jan12 20 Puts
BTO 3 Apr12 20 Puts
for a net credit of $0.30 per contract (GTC, limit order)
[/private_monthly]
Max Risk: $710
Profit Range: $22.40 + by Apr 20
Max Profit: $190 or 26% by Apr 20
Suggested Stop @: $19.50
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