Stock / Symbol: [private_monthly]Google / GOOG
Price at trade post: $535[/private_monthly]
Option Strategy: put spread
Reasoning: We think that [private_monthly]GOOG[/private_monthly] is shaky here and can easily pull back to its recent lows. In addition to looking like it'll fail technically, this trade also serves as a systemic hedge to the market.
Max Risk: $360
Max Reward: $640 or 177% by Jun 17th
Profit Range: $0 - $526.30
Max Profit at: $0 - $525
Trade Details:
[private_monthly]
Buy 1 GOOG Jun11 530 Put
Sell -1 GOOG Jun11 520 Put
for a net debit of $3.60 per contract
Requirements:
Cost/Proceeds $360.00
Option Requirement $0.00
Total Requirements $360.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
[/private_monthly]
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