Stock / Symbol: JDS Uniphase / JDSU
Price at trade post: $19.40
Option Strategy: bull put spread
Reasoning: There's an 85% chance that this trade will yield the full 26% by May 20th but as we're up nicely here, we're going to see if we can exit the trade prior this co's earnings release on Wednesday afternoon. We took in a credit of $0.43 per contract and we're hoping to close the trade here for a net debit of $0.10 per contract for a 20.89% return.
Trade Details:
STC 4 JDSU May11 15 Puts
BTC -4 JDSU May11 17 Puts
for a net debit of $0.10 per contract
Max Risk: $632
Max Reward: $168 or 26% by May expiration
Profit Range: $16.60 +
Max Profit at: $17 or higher
Current Profit / Loss: $116 or 18.47%
Return if filled at $0.10 per contract: 20.87%
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