Friday, October 21, 2011

Bull Call Spread (24 Oct 11): SPY

Look for a bullish market where you anticipate a modest increase in the price of the stock above the price of the short Call option.
SPY  $123.97
Buy to Open (1) Nov 11 122 C @ $5.03
Sell to Open (1) Nov 11 127 C @ $2.11 
Net Debit: $2.92 ($292.00)
Breakeven: $124.92
Max. Profit: $208.00
Pct Return: 71.2% (28 days)

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