Sunday, November 20, 2011

Bear Put Spread (21 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  $49.40
Buy to Open (1) Dec 11 53 P @ $4.15
Sell to Open (1) Dec 11 48 P @ $1.48 
Net Debit: $2.67 ($267.00)
Breakeven: $50.33
Max. Profit: $233.00
Pct Return: 87.3% (27 days)

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