Bear Put Spread (4 Jul 11)

TO ALL:

Here are the “potential trades” for next week:

Bear Put Spread (ETFs)

A Bear Put spread is a debit spread created by purchasing a Put with a higher strike price and selling a Put with a lower strike price.  Both options expire in the same month.  This is a bearish strategy and should be implemented when you expect the market to close below the strike price of the short Put option—the point of maximum reward (at expiration).   

GLD $144.93

Buy to Open (1) Aug 11 149 P @ $5.45

Sell to Open (1) Aug 11 144 P @ $2.45 

Net Debit: $3.00 ($300.00)

Breakeven: $146.00

Max. Profit: $200.00

Pct Return: 66.7% (46 days)

TLT $93.63

Buy to Open (1) Aug 11 96 P @ $3.65

Sell to Open (1) Aug 11 91 P @ $0.98 

Net Debit: $2.67 ($267.00)

Breakeven: $93.33

Max. Profit: $233.00

Pct Return: 87.3% (46 days)

SLV $33.00

Buy to Open (1) Aug 11 36 P @ $3.70

Sell to Open (1) Aug 11 31 P @ $0.88 

Net Debit: $2.82 ($282.00)

Breakeven: $33.18

Max. Profit: $218.00

Pct Return: 77.3% (46 days)

VXX $20.29

Buy to Open (1) Aug 11 22 P @ $3.25

Sell to Open (1) Aug 11 17 P @ $0.28 

Net Debit: $2.97 ($297.00)

Breakeven: $19.03

Max. Profit: $203.00

Pct Return: 68.4% (46 days)

All positions displayed are for educational purposes only and are not intended to be recommendations.