Stock / Symbol: Priceline.com / PCLN
Option Strategy: put spread
Price at trade entry: $535.26
Price at this post: $521.20
Reasoning: Although our price target entering this trade was $500, we're going to take advantage of a big down day in the market and grab a quick profit on this trade. Of course, if you'd like, feel free to hold out for a bigger gain if you think PCLN can move much lower by Oct expiration.
Trade Details:
STC 1 PCLN Oct11 520 Put
BTC -1 PCLN Oct11 500 Put
for a net credit of $8.25 per contract (GTC, limit order)
Max Risk: $685
Max Reward: $1325 or 193% by Oct exp
Profit Range: $0 - $513 by Oct exp
Suggested Stop: at or above $562
Realized Profit / Loss upon fill: $140 or 20% (pre-commission)
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