Stock / Symbol: Bank of America / BAC
Option Strategy: [private_monthly]diagonal call spread[/private_monthly]
Trade entry date / price: 22 Jan / $15.82
Price at this adjustment: $16.07
Reasoning: We were able to capture nearly all of the premium on the calls we sold. Rolling the short calls to calls expiring on March 6th and a half a strike lower. Additionally, I'm raising our stop to $15.82 to insure a profitable trade.
Trade Adjustment Details:[private_monthly]
BTC -2 BAC Feb16 16.5 calls
STO -2 BAC MarWk1 16 calls
for a min net credit of $0.30 per contract (day order, limit order). The mid is currently at 0.34. Try for the mid -0.01.
[/private_monthly]
Max Risk: $1083 (down from $1170)
Max Reward: $115 or 11% (at current volatility level) [private_monthly] at $16 by Mar 6th[/private_monthly]
Profit Range: $15.30 + by Mar 6th
Suggested Downside stop: @ $15.82
Suggested Upside stop: NA
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