Sunday, December 4, 2011

Bull Call Spread (5 Dec 11): SSO

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.
SSO $45.49
Buy to Open (1) Jan 12 42 C @ $5.45
Sell to Open (1) Jan 12 47 C  @ $2.33 
Net Debit: $3.12 ($312.00)
Breakeven: $45.12
Max. Profit: $188.00
Pct Return: 60.3% (48 days)

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