DG Earnings Trade of the Day 9.3.2013

Trade: Selling the DG Sep 52.5-55 Call Spread for $1.20
Risk: $130 per 1 lot
Reward: $120 per 1 lot
Breakeven: $53.70

 

This trade reaches maximum profit if the stock closes below 52.5 on expiration, but it still profits anywhere below $53.70. This means that the stock can sell off, sit still, or even rally some and we will still profit in this trade.

 

DG