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Underline stock: WMT
Date adjusted: April 5, 2013
Adjustments:
We buy back April 75 short call for $160 per contract debit and
sell May 75 short call for $210 per contract credit. Net credit received
for this adjustment is $50 per contract. Please recall after adjustment
#2 made on March 18, we have net credit of $19 per contract. Now with
this adjustment, we have a net credit of $69 per contract for this trade.
Reasons:
WMT traded past our short call strike price of $75. However, we
still believe the stock will retreat. By rolling our April 75 call to May
75 call, we buy more duration for our trade and get paid $50 per contract
for the rolling.
Summary:
We now have April 67.50 short put and May 75 short call for a net
credit of $69 per contract in this trade.
Cheers,
Dennis Phan 潘家墉
11 April 2013
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