[Opening Spread on Weatherford International (WFT)]
Dear Member:
Weatherford International (WFT) recently split and remains in an uptrend. The implied volatility is relatively high so I was looking for a net sale. I am placing an order to open a bull put spread for a credit. The order I am placing is simultaneously to buy to open the Jul 40 puts (WFTSH) and sell to open the Jul 42.50 puts (WFTSV) at a credit limit of 35 cents. I will place my order to buy and sell the same number of contracts. If filled, before commission, the potential return without any adjustment will be the original credit or a little over 16% in 24 days. The risk without any adjustments would be a maximum of $2.15 a share.
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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