Stock / Symbol: [private_monthly]Lockheed Martin / LMT[/private_monthly]
Price at trade post: $79.36
Option Strategy: put spread
Reasoning: [private_monthly]LMT[/private_monthly] is having difficulty breaking through it's 50 day moving average, and it looks like it wants to back-fill towards its 200 day avg, which is $74.67. This is a technical based trade. Just in the case the market doesn't pull back much further from here and supports the stock, we're only risking $180 on this trade.
Max Risk: $180
Max Reward: $320 or 177% by Jun expiration
Profit Range: $0 - $78.20
Max Profit at: $0 - $75
Trade Details:
[private_monthly]
BTO 1 LMT Jun11 80 Put
STO -1 LMT Jun11 75 Put
for a net debit of $1.80 per contract
Requirements:
Cost/Proceeds $180.00
Option Requirement $0.00
Total Requirements $180.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
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