Stock Symbol: JNJ
Price at time of Trade: $57.60
Current Price: $58.64
Option Strategy: bull put spread - generates a credit trade
Risk: low
Reward: limited
Reasoning: When the market was up big this morning, JNJ was barely up, signaling that it's running out of steam. While JNJ's price only increased 1.80% since we put this trade on, our position is up 30%. Let's lock in this nice profit!
Trade Details (updated 9/04/10 to reflect actual trade details from our brokerage account):
STC 2 JNJ SEP10 55 PUTS @ $0.07 for $13.96
BTC 2 JNJ SEP10 60 PUT @ $1.47 for ($296.02)
Cost: ($282.06)
On 8/29 we took in Proceeds of: $453.94
Gain: $171.88
Max Risk: $550
Return: 31.25%
Total Commissions: ($25.90)
Net Gain: $145.98
Net Return: 26.54%
Chart:
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