New Trade – calendar put spread

Stock / Symbol: [private_monthly]Tesla Motors / TSLA [/private_monthly]
Price at trade post: $27
Option Strategy: calendar put spread

Max Risk: $125
Max Reward: $74 or 67% by Apr 2011 expiration
Profit Range: $24.70 - 27.50
Max Profit at: $26
Uncalled Return: 28%

Reasoning: Following its recent gap up, we're going to pick on [private_monthly]TSLA[/private_monthly] again. If the stock is trading above $26 by April 15th, we'll either just hang on to the long put or sell further out of the money May put against it.

Trade Details:

STO -1 TSLA Apr11 26 Put
BTO 1 TSLA May11 26 Put
for a net debit of $1.25 per contract

Cost/Proceeds $125.00
Option Requirement $0.00
Total Requirements $125.00
Estimated Commission $12.95


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