Stock / Symbol: [private_monthly]Aixtron / AIXG [/private_monthly]
Price at trade post: $34.30
Option Strategy: bull put spread
Max Risk: $520
Max Reward: $80 or 15.38% by Jan 2011 expiration
Profit Range: $30.60 +
Max Reward Price: $31 + at Jan 2011 expiration
Reasoning: We're taking advantage of increased volatility in this stock due to a technical pull-back. The fundamentals a very strong with this stock and it has an 80% probability of closing above our break even at $30.60 by January expiration
Trade Details:
[private_monthly]
Buy 2 AIXG Jan11 28 Puts @ $0.35 for $70.00
Sell -2 AIXG Jan11 31 Puts @ $0.75 for ($150.00)
for a net credit of $0.50 per contract (raised from $0.40)
Requirements
Cost/Proceeds ($80.00)
Option Requirement $600.00
Total Requirements $520.00
Estimated Commission $12.95
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Chart:
[private_monthly]
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