[Opening bullish credit spread on Motorola (MOT)/Selling Dec 17 Puts (MOTXR) and simultaneously buying Dec 16 Puts (MOTXQ)/Credit Limit $0.20]
Dear Member,
I am placing an order to open a bullish credit spread on Motorola (MOT). I am creating a $1.00 spread by buying the Dec 16 Puts (MOTXQ) and selling the Dec 17 Puts (MOTXR)for a net credit of $0.20. If Motorola stays above 17 until expiration, the trade will yield a 25% return on risk for 5 weeks excluding commissions.
I really like $1 spreads since my risk per contract is only $1. less the credit brought in at inception (excluding commissions).
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