3/3/2011
ELN $6.50 on 10 to 6 ratio
Buy to Open the October 5 Calls for $1.95
Sell to Open the April 7 Calls for $0.20
4/12/2011
ELN@$7.42
After looking at things in this market, we have decided to close down ELN.
Buy to Close the April 7 Calls for $0.45
Sell to Close the October Calls for $2.60
This is a profit of about 25% in the position. We had hoped it would go a little higher, but given the market we would rather use this capital in a stock that doesn’t have a big resistant point against us.
Earnings are next week so it could be explosive in either direction. If you want to stay in the play you can, but you will have to roll out your short april calls.
If you think the stock has more upside potential then you could roll out to he May 8s to collect $0.25.
If you think it is somewhat stable and want a little more premium then you could roll to the May 7s for $0.65. We would recommend going with a ratio on this one for the upside potential.
