[Opening Spread on Nasdaq Stock Market Inc (NDAQ)]
Dear Member:
Nasdaq Stock Market Inc (NDAQ) has broken above resistance this morning. With only 8 days to expiration, there is a bullish put spread I like that has a relatively high risk, but potential high reward. I am placing an order to simultaneously sell to open the Feb 35 puts (NQDOG) and buy the Feb 32.50 puts (NQDOZ) for a credit limit of 60 cents for the day. If filled, this would provide a 30+ percent return on risk in just 8 days if the stock stays above $35. If it drops, however, there is probably no time to adjust and the whole position would be closed for a loss.
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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