Stock / Symbol: US Steel / X
Option Strategy: [private_monthly]diagonal call spread[/private_monthly]
Trade entry date: Mar 26
Price at trade entry: $29.66
Price at Apr 27 adjustment: $28.32
Price at Jun 12 adjustment: $18.20
Price at this adjustment: $23.30
Current Position:[private_monthly]
Long 3 X Jan13 22.5 Calls
at an effective cost of $3.76 per contract
[/private_monthly]
Adjustment: Given that on the Jun 12 adjustment, X was down 39% from when we entered the trade, it's pretty amazing that we're now down just about $180 or 16% on the trade. X does look like it can get to our current break even mark at about $24.15, but this is salvaged trade and it's good to get out with a relatively small loss.
If you were one of the lucky ones to get in this trade as we recommended on Jun 12, you're now up 77%!!! Time to take profits.
Trade Adjustment Details:[private_monthly]
STO -2 X Aug12 23 calls
for a min credit $0.80 per contract (current bid/ask = 0.88/ 0.89, day order, limit order)
Or, if you entered the trade on June 12th:
STC 2 X Jan13 22.5 calls
for a min credit $3.15 per contract (current bid/ask = 3.20 / 3.30, day order, limit order). for a 75%+ return!!!
[/private_monthly]
Max Risk: $1,130 (adjusted up from $810)
Max Reward: unlimited
Profit Range: $28+ by Aug12 expiration
[/private_monthly]
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