Closing Trade : MCD

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 1st adjustment: $97.85
Price at this post: $92.03

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
+
Long 5 MCD Jun12 97.5 calls
Short -5 MCD May12 97.5 calls
at a net cost of $0.59 per contract
[/private_monthly]

Reasoning: Hindsight is always 20/20 but sure wish we didn't add on the 97.5 strike calendar. Unless MCD makes a recovery back up to $94 by next friday, this trade will likely result in a loss. Entering in GTC closing orders here that should get filled with MCD trading just over $93.[/private_monthly]

Closing Trade Details:
[private_monthly]

STC 5 MCD Jun12 97.5 calls
BTC -5 MCD May12 97.5 calls
for a net credit of $0.28 per contract (current bid @ 0.16 / ask @ 0.18, GTC, limit order)

BTO 5 MCD Jun12 97.5 calls
STO -5 MCD May12 97.5 calls
for a net credit of $0.64 per contract (current bid @ 0.44 / ask @ 0.46, GTC, limit order)

Max Risk: $600
Max Reward: $200 or 33% by May 18
Profit Range: $94 to $98.20 by May 18
Max Profit at: between $95 and $97.50
Profit / Loss Upon fill: ($145) (pre-commission)

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