Option Investor
Updates

READY TO TRY A NEW POSITION?

HAVING TROUBLE PRINTING?
Printer friendly version
?New positions are always exciting -- or at least they should be. An arm here, a leg there . . . Well, today we're going to initiate a new May CPTI position on the S&P Midcap 400 ($MID) Index. We haven't used this index in the past, so it should be interesting. Due to the fact that it consists of midcap stocks, it should offer us another degree of diversification. The range is sizable so we are being relatively conservative as well.

So, here goes . . .

Sell 12 May MID 620 puts
Buy 12 May MID 610 puts
Credit of about $.65 ($780)

Sell 12 May MID 700 calls
Buy 12 May MID 710 calls
Credit of about $.45 ($540)

Total net credit and profit potential of $1.10 ($1,320). Maximum profit range of 620 to 700. Maintenance is $12,000.

Good luck and trade smart!

Mike

Couch Potato Trader Updates Archives