Stock / Symbol: Sprint / S
Option Strategy: bull put spread
Price at trade entry: $4.53
Price at exit order: $5.00
Max Risk: $480 (at May expiration)
Max Reward: $270 or 56% with stock over $4.50 (at May expiration)
Reward upon close here: $120 or 25%
Reasoning: Being that we're already up 25% on a trade with 70 days yet to go to realize the maximum gain, we're going to close this trade out here for a nice profit after just a month. Note: our limit order of $0.10 may not get filled right away. If you wanted to close this trade out immediately, you could at $0.11. Of course, if you're really bullish on Sprint, you could hold out till May 20th to see if you can capture the full 56% yield from the trade.
Trade Details:
STC 15 S May11 4 Puts
BTC -15 S May11 4.5 Puts
for a net debit of $0.10 per contract
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your selling vs. buying options . meaning you would need how much money for startup? also what does your service run monthly?
larry
Larry,
By simultaneously selling options at the same time you’re buying them, you actually need less to put on a trade than if you just bought those options. Our trades are based upon a $10,000 account. Many of our members have trading accounts in the 6 and 7 figure range, so they simply multiply the difference between their account and ours by the number of contracts we’re trading. For example, if we’re trading 2 contracts per leg, then someone with a $100K account would trade 20 contracts per leg. Or, if you had a $5K account, you’d trade just 1 contract per leg.
In order to participate in most of our trades, you’d need at least $5,000 in your account.
Our service is $89 per month.