Stock / Symbol: [private_monthly]Yahoo / YHOO[/private_monthly]
Price at trade post: $18.70
Option Strategy: bear call spread
Reasoning: After reporting good numbers last month, this company has essentially shot straight up for the past 2.5 weeks. We think this stock is overbought here and very likely to pull back to it's 50 day average. Our break even on this trade is 3% higher than [private_monthly]YHOO's[/private_monthly] current price. This trade has an 63% probability of success.
Max Risk: $395
Max Reward: $105 or 26% by May 20th
Profit Range: $0 - $19.21
Max Profit at: $0 - $19
Trade Details:
[private_monthly]
STO -5 YHOO May11 19 Calls
BTO 5 YHOO May11 20 Calls
for a net credit of $0.22 per contract
Requirements:
Cost/Proceeds ($110.00)
Option Requirement $500.00
Total Requirements $390.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
[/private_monthly]
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