Look for a bearish market where you anticipate a modest decrease in the price of the stock below the strike price of the short Put option. |
TLT $113.95
Buy to Open (1) Nov 11 117 P @ $5.20
Sell to Open (1) Nov 11 112 P @ $2.37
Net Debit: $2.83 ($283.00)
Breakeven: $114.17
Max. Profit: $217.00
Pct Return: 76.6% (35 days)
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