[Opening Bearish Call Spread on The Ryland Group (RYL)/Simultaneously Buying Jun 65 Calls (RYLFM) and Selling Jun 60 Calls (RYLFL)/Day Order/Limit Net Credit $1.10]
Dear Member:
With the markets dropping and the homebuilders losing a little ground, I am placing an order to enter a bearish call spread by simultaneously buying the Jun 65 calls (RYLFM) and selling the Jun 60 calls (RYLFL) for a net CREDIT before commission of $1.10. If filled and if the stock stays below 60 at expiration (currently trading about $57.73) this will represent a 28% return on risk before commissions in 35 days.
DISCLOSURE: At the time of publication I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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