An earnings trade in Michael KORS

I have a long stock position in my Submarine Basket and decided to use Options to protect into earnings on 5/29:

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Here is a breakdown of this Short Call/PS:

I am short the June 60 Call
I am short the June 60 Put & long the June 55 Put
I collected 5.74 for these Options pieces
The downside on the Put spread is capped at $5 so the $55 level is key to watch for my stock position (there would be a $.74 cushion to work within this scenario)
The upside is capped at 65.74 (a more ideal scenario, lol)

One thought on “An earnings trade in Michael KORS

  1. Adjustment made on 5/29: sold stock at $63, BtC May 31w 60 Put at $.40, BtC May 31w 60 Call, & StO May 31w 62.5 Call. Cushion of $3.49 remains

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