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 post: $24.74
Current Position: [private_monthly]
Short -3 Apr12 23 Puts
Long 3 Apr12 20 Puts
at a net credit of $1.58 per contract
[/private_monthly]
Reasoning: While this trade is looking good, and we've made up for the loss we took rolling the Jan12 puts, earnings are due out tonight. So, as we're about breakeven on the trade, we'd rather not risk an earnings surprise and will close the trade here. Also, if you happened to first enter the trade with the April puts, then you're up 36% on the trade... time to take profits!
Closing Trade Details: [private_monthly]
BTC -3 Apr12 23 Puts
STC 3 Apr12 20 Puts
for a net debit of $0.58 per contract (day order, 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
Profit / loss upon fill: $3.30 (pre-commission)
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