Trade Adjustment : CSCO

Stock / Symbol: [private_monthly]Cisco Systems / CSCO[/private_monthly]

Option Strategy: calendar call spread
Price at trade entry: $16.70
Price at this adjustment: $16.00

Current Position:[private_monthly]
Short -8 CSCO Aug12 17 calls
Long 8 CSCO Oct12 17 calls
at a net cost of $0.28 per contract
[/private_monthly]

Reasoning: With CSCO pulling back, we're going to make an adjustment to position our trade within the standard deviation calculation for CSCO (on August expiration) between [private_monthly] 14.50 and 17.50. To adjust, we're adding 15 and 16 strike calendars, buying back 2 of the short Aug 17 calls and buying one Aug 17 put. Now, if our stops are hit again, we will just exit the trade for a relatively small loss.[/private_monthly]

Trade Details:[private_monthly]

STO -6 CSCO Aug12 16 calls
STO -6 CSCO Aug12 15 calls
BTO 6 CSCO Oct12 16 calls
BTO 6 CSCO Oct12 15 calls
for a max net debit of $0.54 per contract (day order, limit order). Current bid 0.45 / ask 0.52.

then,
BTC -2 CSCO Aug12 17 calls
at the market

then,
BTO 1 CSCO Aug12 17 put
at the market

[/private_monthly]

Max Risk: $724
Max Reward: $300 or 41% at $16 by Aug 17
Profit Range: $14.50 - $17.50 by Aug 17
Suggested upside stop: @ 18.00
Suggested downside stop: @ 14.30