Stock / Symbol: Walter Energy / WLT
Option Strategy: [private_monthly]butterfly call spread[/private_monthly]
Price at this post: $63.30
Reasoning: If there's one thing you can say about WLT, it's that [private_monthly] it's a very volatile stock. The butterfly we're putting on takes good advantage of this stocks price movement. This trade is structured to benefit with WLT trading either under $60 or over $65 by May expiration.[/private_monthly]
Trade Details: [private_monthly]
STO -3 WLT May12 60 calls
BTO 6 WLT May12 62.5 calls
STO -3 WLT May12 65 calls
for a net credit of $0.38 per contract (day order, limit order)
Requirements
Cost/Proceeds: ($114.00)
Option Requirement: $750.00
Total Requirements: $636.00
Estimated Commission: $15.00
[/private_monthly]
Max Risk: $636
Max Reward: $114 or 17% by May 18
Profit Range: $0 - $60 & $65 + by May 18
Suggested stop: between $60.5 and $64.50 after May 15
[/private_monthly]
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