Long Put (3 Oct 11): IWM

This strategy is used when you anticipate a fall in the price of the stock.

IWM  $64.30

Buy to Open (1) Jan 12 65 P @ $5.94 

Net Debit: $5.94 ($594.00)

Profit Target (50%): $8.90 ($890.00)

Stop-Loss Point (50%): $3.00 ($300.00) 

Bull Call Spread (3 Oct 11): TLT

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.

TLT  $120.83

Buy to Open (1) Oct 11 116 C @ $5.65

Sell to Open (1) Oct 11 121 C @ $2.55 

Net Debit: $3.10 ($310.00)

Breakeven: $119.10

Max. Profit: $190.00

Pct Return: 61.3% (20 days)

Bear Put Spread (3 Oct 11): IWM

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.

IWM  $64.30

Buy to Open (1) Oct 11 69 P @ $6.04

Sell to Open (1) Oct 11 64 P @ $3.13 

Net Debit: $2.91 ($291.00)

Breakeven: $66.09

Max. Profit: $209.00

Pct Return: 71.8% (20 days)