[Opening Bearish Call Spread on United Technologies (UTX)]
Dear Member:
United Technologies (UTX) has been in a bearish trend since early October. I am placing an order to open a bearish call spread with a December expiration (24 days away). The order is to simultaneously buy the Dec 80 calls (UTXLP) and sell the Dec 75 calls (UTXL0) for a credit limit of $0.85. If filled, and the stock stays below 75 until expiration, the return on risk before commissions would equal 20.5%. The stock is currently trading around $72.90.
DISCLOSURE: At the time of publication, I have no position in UTX or any of its options.
Sincerely,
Bill Kraft
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