[Opening Bullish Spread on AtheroGenics (AGIX)/Simultaneously selling Nov 22.50 Put (AUBWX) and Buying Nov 20 Put (AUBWD)/Spread Order/CREDIT limit for the day $0.40]
Dear Member,
With AtheroGenics (AGIX)currently at $29.90, I am entering a credit spread. I am placing a spread order to buy the Nov 20 Puts (AUBWD) $0.35 x $0.40 and selling the Nov 22.50 Puts (AUBWX) .80 x .85. If filled, this would represent a 19% return on risk between now and Nov expiration (Nov 19th) as long as the stock stays above $22.50. There is a gap between $25.85 and $23.50. If the stock goes below that gap I will probably adjust.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
|
