Stock / Symbol: [private_monthly]Exelon / EXC[/private_monthly]
Price at trade post: $42.40
Option Strategy: bear call spread
Max Risk: $480
Max Reward: $120 or 25% by Apr 2011 expiration
Profit Range: $0 - $44.20
Max Profit at: $0 - $44
Reasoning: We're expecting that US nuclear power projects will suffer setbacks over concerns about Japan's nuclear plants in the wake of the disaster there. Also in our favor, the fundamental value of this co is just $36 per share
Trade Details:
[private_monthly]
Sell -6 EXC Apr11 44 Calls
Buy 6 EXC Apr11 45 Calls
for a net credit of $0.20 per contract
Requirements
Cost/Proceeds ($120.00)
Option Requirement $600.00
Total Requirements $480.00
Estimated Commission $15.00
[/private_monthly]
Chart:
[private_monthly]
[/private_monthly]
Non-members, click here for access
Speak Your Mind