Break-even: I breakeven on this trade if GMCR closes at $22 or $32 between now and June 15, 2012.
Unprofitable: I look at the at-the-money straddle in GMCR in June and it is implying a $5 move either up or down between now and June expiration. I want to be LONG premium in the back month for earnings and short it in the non-earnings month. So, I bought the September strangle and sold the June Strangle and will make money as long as GMCR stays in a $22-$32 range.
UPDATE 5.7.2012 With time on my side, this Spread is currently worth $3.65 and increasing in value over 7% over 1 day. I will leave it on for more potential upside.
UPDATE 5.8.2012 With lack of movement, this spread is increasing in value by the day. This spread is currently worth $4, but I wll leave this on for more upside profits.
UPDATE 5.9.2012 With stock moving all over the place, this Spread is currently worth $3.85, but leaving it on with time on my side.
UPDATE 5.10.2012 In theory, everyday that by, this Spread should increase in value if the stock does not move. Today, it is worth $4.05, but I will leave it on until at least June expiration.
UPDATE 5.11.2012 In theory, everyday that by, this Spread should increase in value if the stock does not move. Today, it is worth $4.05, but I will leave it on until at least June expiration.
UPDATE 5.14.2012 This spread actually moves around everyday and today this Spread is worth $3.80. I will leave it on until ar least June expiration.
UPDATE 5.15.2012 This spread is back to be worth $4, but I will leave it on.
UPDATE 5.16.2012 Time is on my side and I will leave this trade on until at least June expiration.
UPDATE 5.22.2012 This Spread is still worth $3.70, but it will be left on until further notice.
UPDATE 6.4.2012 This Spread is still worth $3.40 and I am leaving it on to capture my profits as June options go down faster than the September ones.
UPDATE 6.15.2012 This Spread is still on and is currently worth $3.50. I will take it off on Friday
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