Stock / Symbol: Johnson & Johnson / JNJ
Option Strategy: [private_monthly] calendar call spread + long calls[/private_monthly]
Trade entry date: Mar 19
Price at trade entry: $65.17
Price at this adjustment: $64.85
Current Position:[private_monthly]
long 4 JNJ Jul12 62.5 Calls
short -4 JNJ Apr12 62.5 Calls
at a net cost of $0.88 per contract
+
long 5 JNJ Jul12 65 Calls
at an effective cost of $2.00 per contract
[/private_monthly]
Adjustment: With JNJ recovering, we're buying back the short 62.5 calls and selling next week's 65 calls. [/private_monthly]
Trade Adjustment Details:[private_monthly]
BTC -4 JNJ May12 62.50 Calls
for a debit of $2.45 per contract (day order, limit order)
then,
STO -5 JNJ MayWk1 65 Calls
for a credit of $0.22 per contract (day order, limit order)
Max Risk: $2,200
Max Reward: unlimited by May 5
Profit Range: @ $66.65+ on May 18
Suggested downside stop: $64
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