Action: Sell to Close Macy’s ($64.04) March 65/67.50 call spread at .20 for a .40 loss.
It made sense to salvage as much premium as possible as it became less probable that the trade would be profitable on Friday’s close as would need a move above $65.60, or up 2.3%. That did end up happening and those would have been profitable, closing at around .80. We stated at the time of closing that we wanted to roll out that bullish view
read original here
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We then rolled out the bullish Macy’s view with a call calender. Here was the trade:
Trade: M ($64) Buy to Open April / May 65 Call Calendar for .95
-Sell to open April 65 call at 1.00
-Buy to open May 65 call for 1.95
The stock is already through the strike and is worth about the same as what we paid. We’ll have to keep a close eye on this one this week as a move back towards $65 will be profitable but a move higher from here puts that trade at risk as it is now short deltas.
read original here
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