Stock / Symbol: [private_monthly]Tesla / TSLA[/private_monthly]
Price at trade post: $26.85
Option Strategy: put spread
Max Risk: $640
Max Reward: $560 or 87.50% by Feb 2011 expiration
Profit Range: $0 - $26.40
Max Reward Price: $25 or lower by Feb 2011 expiration
Reasoning: This stocks fundamentals are very poor and the technicals are indicating that this stock can really drop from here.
Trade Details:
[private_monthly]
Sell -4 TSLA Feb11 25 Puts @ $2.10 for ($840.00)
Buy 4 TSLA Feb11 28 Puts @ $3.70 for $1,480.00
for a net debit of $1.60 per contract
Requirements:
Cost/Proceeds $640.00
Option Requirement $0.00
Total Requirements $640.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
Flash Player 9 or higher is required to view the chart Click here to download Flash Player nowa> at Wikinvest
[/private_monthly]
Non-members, click here for access
Speak Your Mind