Traded on 11/16/07
This is what the chart looked like when I got into HRS. Bullish to neutral trend. Resistance at 65, stock at ~63. As long as the stock stays below 65 I will not get called out and can keep the long position and sell the short again next month.
Bought Feb 50 Call for $13.90 debit and Sold Dec 65 Call for $1.50 credit
Total cost basis (debit) = $12.40 or $1,245.90 w/ commissions
Max Profit (in ~ 1 month):
If not called out- $1.50 (credit) /$13.90 (Debit)= 10.8% ROI
If called out- $2.60 (Diff. between strike prices minus cost basis)/$12.40 (cost basis)= 21% ROI
Max Loss:
Stop ordered on $9.90 exit on 11/16/07 ($2.48 actual loss from debit of $12.40)
Exit: If not called out, ~ 1 week prior to expiration, I will keep the long Feb call buy back the Dec short and sell a Jan call.
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