Stock / Symbol: [private_monthly]ProShares UltraShort 20+ Year Treasury / TBT [/private_monthly]
Option Strategy: call ratio spread
Price at this post: $20.90
Reasoning: Looks like [private_monthly]TBT[/private_monthly] is finally bottoming, so we're going to re-enter a trade on it. This trade is structured to give us a breakeven at about $19.50, which is 7% lower than the current price. The trade also gives unlimited upside and thru to Next March to make money.
Max Risk: $508
Max Reward: $90 or 17.7% @ $20 / Unlimited over $23.15 by Nov 18
Profit Range: $19.50 +
Uncalled Return: 26%
Suggested Stop @: $17.90
Trade Details:[private_monthly]
BTO 3 TBT Mar12 20 calls
STO -2 TBT Nov11 20 calls
for a net debit of $5.08 per contract (GTC, limit order)
Requirements:
Cost/Proceeds: $508.00
Option Requirement: $0.00
Total Requirements: $508.00
Estimated Commission: $12.95
[/private_monthly]
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