Stock / Symbol: Johnson & Johnson / JNJ
Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Trade entry date: Mar 19
Price at trade entry: $65.17
Price at this adjustment: $66.21
Current Position:[private_monthly]
long 5 JNJ Jul12 65 Calls
short -5 JNJ Apr12 65 Calls
for a net debit of $0.96 per contract (includes commission cost)
Reasoning: With JNJ trading above our upside breakeven point of $66.05, we're going to [private_monthly]add a 67.5 strike calendar here.
Trade Details:[private_monthly]
BTO 5 JNJ Jul12 67.50 Calls
STO -5 JNJ Apr12 67.50 Calls
for a net debit of $0.69 per contract (be sure to get filled by tomorrow but don't pay more than 0.71, GTC, limit order)
Requirements:
Cost/Proceeds $340
Option Requirement $0
Total Requirements $340
Estimated Commission $12.95
[/private_monthly]
Max Risk: $820 (480+340)
Max Reward: $100 or 12% by Apr 20
Profit Range: $64.65 to $67.58 on Apr 20
Max Profit at: $65
Suggested upside stop: $64.65
Suggested downside stop: $67.50
[/private_monthly]
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