Sunday, November 20, 2011

Bull Call Spread (21 Nov 11): USO

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.
USO $37.82
Buy to Open (1) Dec 11 35 C @ $3.45
Sell to Open (1) Dec 11 40 C @ $0.67 
Net Debit: $2.78 ($278.00)
Breakeven: $37.78
Max. Profit: $222.00
Pct Return: 79.9% (27 days)

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