Saturday, October 1, 2011

Bull Call Spread (3 Oct 11): TLT

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.
TLT  $120.83
Buy to Open (1) Oct 11 116 C @ $5.65
Sell to Open (1) Oct 11 121 C @ $2.55 
Net Debit: $3.10 ($310.00)
Breakeven: $119.10
Max. Profit: $190.00
Pct Return: 61.3% (20 days)

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