Break-even: I break-even on this trade if P closes at $11.70 by May 18, 2012.
Unprofitable: This trade is unprofitable if P closes under $11.70 by May 18, 2012. The most I can I can lose is the $.70 that I paid for the Calls.
Reason I Like This Trade: When P was trading $10.46, I saw a customer buy 2439 Pandora May 11 Calls for $.70. I then saw more unsual options activity and paper sell May 11 Puts and April 10 Puts. I knew that I wanted to get LONG, but I always like to define my risk vs reward so I bought Calls since I think the stock will move higher.
UPDATE 4.9.2012 These Calls are currently worth $.25 and this trade has not worked out very well. Since I know I can only lose $.25 more cents I will leave these Calls on.
UPDATE 4.11.2012 These Calls have now turned into a lottery ticket and another stock where I have purchased Calls and have not worked out very well. I will look to take this trade off with any rally in Pandora.
UPDATE 4.23.2012 Another worthless Calls as these Calls are only worth $.10. I realize now that everytime I buy Calls they go to zero, so I will be doing that anytime soon.
UPDATE 4.30.2012 With a rally in P last week, I took these Calls off for $.15, realizing that some money is better than none. Moving on to the next trade
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