Thursday, October 22, 2009
Lockheed Martin Diagnal Call Spread (Update)
Following a poor outlook for FY 2010 earnings provided by management on the recent earnings conference call, LMT's stock price fell considerably on 10/20. In light of this price movement, I defensively repositioned the LMT spread by (i) buying back the 10 December 80s, and (ii) selling 10 December 75s, for a net credit of $1100 less commissions. The position's max profit point is now $75 as opposed to $80.
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