Stock / Symbol: [private_monthly]Sotheby's / BID [/private_monthly]
Price at trade post: $48.00
Option Strategy: put spread
Reasoning: While [private_monthly]BID[/private_monthly] has moved up with the greater market, our fundamental models show that it's fully valued here at $48. Additionally, we don't see the stock trading above its recent 52 week high of $55.67. This is a high probability trade as the stock can move an additional 13.8% higher and still allow us to take in the full yield.
Max Risk: $880
Max Reward: $120 or 13.6% by Jul 15th
Profit Range: $0 - $55.60
Max Profit at: $0 - $55 by Jul 15th
Trade Details:
[private_monthly]
STO -2 BID Jul11 55 Puts
BTO 2 BID Jul11 60 Puts
for a net debit of $4.40 per contract (GTC / limit order)
Requirements:
Cost/Proceeds $880
Option Requirement $0.00
Total Requirements $880.00
Estimated Commission $12.95
[/private_monthly]
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