Sunday, November 13, 2011

Bear Put Spread (14 Nov 11): EFA

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.

EFA  $51.80
Buy to Open (1) Dec 11 56 P @ $5.00
Sell to Open (1) Dec 11 51 P @ $2.00 
Net Debit: $3.00 ($300.00)
Breakeven: $53.00
Max. Profit: $200.00
Pct Return: 66.7% (33 days)

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