Stock / Symbol: McDonalds / MCD
Option Strategy: [private_monthly]calendar spread[/private_monthly]
Trade entry date: Apr 25
Price at trade entry: $94.95
Price at this adjustment: $97.85
Current Position:
[private_monthly]
Long 5 MCD Jun12 95 calls
Short -5 MCD May12 95 calls
at a net cost of $0.60 per contract
[/private_monthly]
Adjustment: With MCD [private_monthly]hitting our upside breakeven, we're adding a 2nd calendar (97.5 strike).[/private_monthly]
Trade Adjustment Details:
[private_monthly]
BTO 5 MCD Jun12 97.5 calls
STO -5 MCD May12 97.5 calls
for a max net debit of $0.60 per contract (bid @ 0.54 / ask @ 0.58, day order, limit order)
Requirements:
Cost/Proceeds $300
Option Requirement $0.00
Total Requirements $300
Estimated Commission $15
[/private_monthly]
Max Risk: $600
Max Reward: $200 or 33% by May 18
Profit Range: $94 to $98.20 by May 18
Max Profit at: $95 to $97.5
Suggested downside stop: $93 or remove 97.5 strike calendar
Suggested upside stop: $98.5 or remove 95 strike calendar
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