Stock / Symbol: Pan American Silver / PAAS
Adjustment Strategy: put spread
Price at trade entry: $32.52
Price at this post: $28.75
Reasoning: Silver did pull back as anticipated, so we're happy that we had this position on to hedge our long position in the stock. If you weren't in the long side of the PAAS trade, hopefully you caught this great low risk, high reward trade.
Risk / Reward analysis for this portion of the trade:
Max Risk: $85
Max Reward: $310 or 244% by Jun 17th
Profit Range: $0 - $31.10
Max Profit at: $0 - $28
Realized Reward upon fill: $210 or 147%
Trade Details:
STC 1 PAAS Jun11 32 Put
BTC -1 PAAS Jun11 28 Put
for a net credit of $2.95 per contract
Non-members, click here for access
Speak Your Mind