[Opening Bearish Call Spread on Diamonds (DIA)/Simultaneously Buying Jun 114 Calls (DIAFJ) and Selling Jun 113 Calls (DIAFI)/Day Order/Limit $0.35]
Dear Member:
The Dow Industrials have broken down through the uptrend line on at least average volume. It looks to me like a further drop may come. I am placing an order to open a bearish call spread on the Diamonds (DIA) by simultaneously Buying Jun 114 Calls (DIAFJ) and Selling Jun 113 Calls (DIAFI)/Day Order/Limit $0.35. If filled, and if no adjustment is needed, this would represent a 53.8% return on risk before commissions at Jun expiration if the DIA stays below 113.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the DIA.
Sincerely,
Bill Kraft
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