Sunday, January 8, 2012

Bear Put Spread (9 Jan 12): SDS

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.

SDS  $18.60
Buy to Open (1) Feb 12 21 P @ $2.85
Sell to Open (1) Feb 12 16 P @ $0.06 
Net Debit: $2.79 ($279.00)
Breakeven: $18.21
Max. Profit: $221.00
Pct Return: 79.2% (40 days)

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