Stock Symbol: [private_monthly]CSTR[/private_monthly]
Price at Time of Trade: $41.70
Option Strategy: bull put spread - generates a credit trade
Risk: low
Reward: limited
Reasoning:Expect that [private_monthly]Coinstar - CSTR[/private_monthly] will move up to at least $43 by October expiration, but will not dip lower than it's current level. Break even on this trade is at $41.60, which is actually lower than its current level.
Max Risk: $640
Max Rewward: $560
Full Profit achieved at $43: 87.5% gain
Trade Details:[private_monthly]
Buy 4 CSTR OCT10 40 PUT @ $1.60 = $640.00
Sell -4 CSTR OCT10 43 PUT @ $3.00 = ($1,200.00) Credit
Requirements:
Cost/Proceeds ($560.00) Credit
Option Requirement $1,200.00
Total Requirements $640.00
Estimated Commission $12.95
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Chart:[private_monthly]
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