[Credit Spread/Buy QFTTX/Sell QFTTE/ Credit $0.55
Dear Member:
I am entering a bullish credit spread on OTEX buying 5 contracts of the August 22.50 Puts (QFTTX) and selling 5 contracts of the August 25 Puts ((QFTTE) for a net credit of $0.55. If no adjustments are necessary, this represents a 28% return on risk. I am only doing 5 contracts since open interest is relatively light. The risk is $975 and I will take in $275 if filled. This trade will last no longer than August expiration (8/20/04).
DISCLOSURE: At the time of publication, I did not have a position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc
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