Adjusting Our WFMI Call Spread

We have been enjoying the ride in Whole Foods Market Inc. (WFMI) shares from November 30, 2010 (WFMI was trading at 47 and change back then; please check: http://optionsmojo.com/2010/11/volatility-squeeze-in-whole-foods-market-inc-wfmi/).

More recently, on March 16, 2011, we initiated further long position in WFMI via May 60/70 Bull Call Spread for a net debit of 3.00 (WFMI was trading at 60.15 back then; please check: http://optionsmojo.com/2011/03/wholehearted-support-for-whole-foods-market-inc-wfmi/). Since then, within the past couple of weeks, we have realized ~ 100% gain in this spread (the spread is worth ~ 6.00 now).

I suggest selling the 60-strike call and buying the 65-strike call, for a net credit of 3.50, thereby taking our original dough (plus 50 cents profit) off the table and playing on the house-money. After this swap, you will be left with a 65/70 call spread in May for WFMI.

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