Stock / Symbol: Coca Cola / KO
Option Strategy: call ratio calendar spread
Trade entry date: Jan 11
Price at trade entry: $67.91
Price at trade exit: $68.59
Reasoning: We're currently up about 10% on the trade. While we can make more money should KO pull back, we lose money if KO continues higher. So, we're going to lock in the profit here.
Trade Details : [private_monthly]
STC 8 KO May12 67.5 Calls
BTC -7 KO Feb12 67.50 Calls
for a net debit of $10.54 per contract (GTC, limit order)
[/private_monthly]
Max Risk: $948
Profit Range: $65.65 – 70.40 (Feb 17)
Max Profit: $600 or 63% @ $67.50 by Feb 17
Realized proft / loss upon fill: $106 or 11% (pre-commission)
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