Break-even: I break-even on this trade if MOS closes at $53.75 or $58.75 by March 30, 2012.
Unprofitable: This trade is unprofitable if MOS closes under $53.75 or above $58.75 by March 30, 2012. The most I can the amount either spread can be worth $2.50 minus the amount I sold it for $1.25 for a total of $1.25.
Reason I Like This Trade: I wanted to take advantage of the lack of movement in MOS and I think the stock is stuck in a range. This is a great way to trade this stock that I thought would not make a breakout to 52 week highs and dips will be bought, 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 This spread expired worthless and a great way to turn $1.25 to zero. I have been playing earnings very well, so I will continue to trade them.
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