Break-even: I breakeven on this trade if MNST closes at $75 by May 18, 2012 and at $74.50 by June 15, 2012.
Unprofitable: I lose money on this trade if MNST closes at $75 by May 18, 2012 and above $75 by June 15, 2012. This trade is a little more complicated than described above. As I looked at the volatility I think I will make money on this trade as long as MNST stays within a $9 range within the next couple of weeks.
UPDATE 5.1.2012 Even though MNST has sold off more than $10 since I put this trade on, this spread is currently worth $.75. I will leave it on for more potential upside knowing that the most I can lose on this spread is the amount I paid for it.
UPDATE 5.2.012 With a rally in MNST over the last 2 days and time on my side, this trade is currently worth $.90, but since I defined my risk vs reward, I will leave this trade for more upside potential.
UPDATE 5.3.2012 With time on my side, this spread is still worth $.75 and I will continue to leave it on.
UPDATE 5.4.2012 With time on my side, this spread is still worth $.75 and I will continue to leave it on.
UPDATE 5.7.2012 With MNST hanging out arounf this $68 level, this is good for my trade and this spread is currently worth $1.10 and good for a double so far.
UPDATE 5.10.2012 With a HUGE POP in MNST on earnings, this Spread has not got a triple and is currently worth $1.50. I will leave this trade on until May expires and play with time on my side.
UPDATE 5.11.2012 Another trade when time is on my side, I will leave this trade for 5 more days in order to try to squeeze more money out of this trade.
UPDATE 5.14.2012 I will leave this position on until at least Friday, but it is currently worth $1.60 for a triple
UPDATE 5.15.2012 A nice perfect landing at $74.95 would be perfect for this trade. The closer MNST is to $75, the more this trade will be work.
UPDATE 5.16.2012 This trade will be properly hedged, but not until Friday when the May options expire to squeeze more money out of this trade.
UPDATE 5.21.2012 The May 75 Puts that I was short tuned into LONG stock versus the June 75 Puts I was long, creating a LONG Call Strategy. These Calls are worth $1 today, and I hedged them by selling stock today.
UPDATE 5.22.2012 As I was frustrated with any LONG positions, when the stock was trading $70.50 I sold my Calls off at $1.25. Taking profits and moving on.
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