Housekeeping: Massey Energy (MEE)

On April 8, we bought July/April $50 call calendar for $3.10.  Here is the link: MEE Calendar.  The trade was done when the stock was trading at $46.30.  Subsequently, the stock dropped all the way down to ~$41 and now trying to make a come back trading at $43.70 as of this writing.  

With April $50 calls gone, I am selling May $50 calls for $0.75 credit to convert the trade to July/May $50 calendar.  This brings our cost down to $2.35.  

Folks, this is why calendar spreads are so powerful if done correctly.  You could be wrong on the direction, but still come out profitable if you play your cards right.  

Good luck!