New Trade : put spread

Stock / Symbol: [private_monthly] / PCLN[/private_monthly]
Price at trade post: $536
Option Strategy: put spread

Reasoning: While it does have strong fundamentals, we feel that [private_monthly]PCLN's [/private_monthly] is technically due for a pull back as it's close to its 52 week high. We'll look to close the trade when the sotck hits $500. We're using a day limit order here. If you don't get filled within a half an hour, consider upping your bid price.

Max Risk: $675
Max Reward: $1325 or 196% by Oct exp
Profit Range: $0 - $513 by Oct exp
Suggested Stop: at or above $562

Trade Details:[private_monthly]

BTO 1 PCLN Oct11 520 Put
STO -1 PCLN Oct11 500 Put
for a net debit of $6.75 per contract (day order, limit order)

Cost/Proceeds: $675
Option Requirement $0
Total Requirements $675
Estimated Commission $12.95


Non-members, click here for access

Speak Your Mind