Stock / Symbol: [private_monthly] Pan American Silver / PAAS [/private_monthly]
Price at trade post: $32.50
Current Option Strategy: diagonal call spread
Adjustment Strategy: put spread
Reasoning: It looks like silver wants to pull back here, so to protect our position in [private_monthly] PAAS[/private_monthly], we're going to add the following put spread. If you're not currently in this trade, this is a great low risk, high reward trade.
Risk / Reward analysis for this portion of the trade:
Max Risk: $90
Max Reward: $310 or 244% by Jun 17th
Profit Range: $0 - $31.10
Max Profit at: $0 - $28
Trade Details:
[private_monthly]
Buy 1 PAAS Jun11 32 Put
Sell -1 PAAS Jun11 28 Put
for a net debit of $0.90 per contract
Requirements:
Cost/Proceeds $90.00
Option Requirement $0.00
Total Requirements $90.00
Estimated Commission $12.95
[/private_monthly]
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