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Strategies & Market Trends : Strictly Buy and Sell Set Ups

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To: chowder who wrote (3551)5/3/2005 12:44:11 PM
From: kodiak_bull  Read Replies (1) of 13449
 
Tales from the Campaign Trail:

No, not a political campaign, my financial campaign with TOL.

I became interested in a specific piece of real estate on TOL, that area at the address known as the 80/75 put spread.

4/1 bought May 80 puts for -$4.40

4/15 STO May 75 puts for +$3.40
4/26 BTC May 75 puts for -$2.10

5/3 STO May 75 puts for +$2.60

This means my position in the trade now sits at a net debit of $0.50; or 50 cents to control $5.00, a 9-1 profit ratio. Currently the spread is valued at $3.00, but in less than three weeks it should widen to $5.00.

With 18 days to expiry, Max Pain predicts a close of $70 to $75 for the stock:

iqauto.com

Kb
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