[Opening Bearish Credit Spread on Boston Scientific (BSX)/Credit Spread buying Oct 42.50 calls (BSXJV) and selling Oct 40 calls (BSXJH)/Spread order/Limit $0.75 credit]
Dear Member,
With Boston Scientific (BSX)in a downtrend since May and now bouncing down off that downtrend line, I am opening a bearish credit spread on BSX. I am buying the Oct 42.50 calls (BSXJV) and selling the Oct 40 calls (BSXJH) for a net credit of $0.75. I place this order as a spread limit order so that both sides will be filled or there won't be a fill at all. If BSX doesn't go above 40, and I do not have to adjust the position, the return on risk before commissions would be 42.8% at October expiration.
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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