Friday, October 28, 2011

Bear Put Spread (31 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  $111.46
Buy to Open (1) Nov 11 114 P @ $4.20
Sell to Open (1) Nov 11 109 P @ $1.40 
Net Debit: $2.80 ($280.00)
Breakeven: $111.20
Max. Profit: $220.00
Pct Return: 78.6% (21 days)

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