Stock / Symbol: Direxion Daily Financial Bull 3x / FAS
Price at trade post: $60.85
Option Strategy: bull put spread
Reasoning: [private_monthly]While financials are under pressure due to the concerns in Europe, we do expect them to find support soon. This bullish trade on financials allows us to profit as long as FAS stays over 53 by this Friday. This trade has a 85% probability of success as it allows FAS to pullback another 13% and still be profitable. If our suggested stop is triggered, we'll either adjust the position by buying some puts or closing it out to protect against downside risk.
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Max Risk: $900
Max Reward: $100 or 11% by Dec 16
Profit Range: $53 +
Downside Stop @: $55
Trade Details:
STO -10 FAS Dec11 53 puts
BTO 10 FAS Dec11 52 puts
for a net credit of $0.10 per contract (day order, limit order)
Requirements
Cost/Proceeds ($100.00)
Option Requirement $1,000.00
Total Requirements $900.00
Estimated Commission $25.00
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