Friday, October 21, 2011

Bear Put Spread (24 Oct 11): TLT

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  $113.13
Buy to Open (1) Nov 11 116 P @ $4.75
Sell to Open (1) Nov 11 111 P @ $1.83 
Net Debit: $2.92 ($292.00)
Breakeven: $113.08
Max. Profit: $208.00
Pct Return: 71.2% (28 days)


No comments:

Post a Comment