Stock / Symbol: Westport Innovations Inc. / WPRT
Price at trade post: $28.09
Option Strategy: [private_monthly]iron condor[/private_monthly]
Reasoning: The probability of success on this iron condor on WPRT is about 80%. If WPRT hits our upside or downside breakeven points prior to May expiration, we'll stop out of the trade. Profit range is between $24 and $32 by May 18 and yields 25%. [/private_monthly]
Trade Details:
[private_monthly]
STO -7 WPRT May12 32 calls
BTO 7 WPRT May12 33 calls
BTO 7 WPRT May12 23 puts
STO -7 WPRT May12 24 puts
for a min net credit of $0.20 per contract (current bid $0.05 / ask $0.45) (day order, limit order). If you're not filled today, try to get filled tomorrow but not after that.
Requirements:
Cost/Proceeds ($140)
Option Requirement $700
Total Requirements $560
Estimated Commission $35
[/private_monthly]
Max Risk: $560
Max Reward: $140 or 25% by May 18
Profit Range: between $24 and $32 by May 18
Suggested Downside Stop @ $24
Suggested Upside Stop @ $32
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