Saturday, January 28, 2012

Bear Put Spread (30 Jan 12): DIA

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.

DIA  $126.45
Buy to Open (1) Mar 12 130 P @ $5.30
Sell to Open (1) Mar 12 125 P @ $2.53
Net Debit: $2.77 ($277.00)
Breakeven: $127.23
Max. Profit: $223.00
Pct Return: 80.5% (48 days)

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