[Opening bearish credit spread on Cyberonics (CYBX)/Buying Sept 22.50 calls (QAJIX) and selling Sept 20 calls (QAJID)/Limit net credit $0.60]
Dear Member,
I am placing an order to enter a bearish call credit spread on Cyberonics (CYBX) buying the Sept 22.50 calls(QAJIX) and selling the Sept 20 calls (QAJID) for a net credit of sixty cents.
Using an example of 10 contracts of each, if I am filled, I would take in a credit of $600 and have a net risk of $1900 without any adjustments. That would represent a return on risk of 31.5% before commissions for the month as long as the stock stays below $20. If it moves above that, I will make adjustments.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
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