Stock / Symbol: Deckers / DECK
Price at trade post: $91
Option Strategy: [private_monthly]bull put spread[/private_monthly]
Reasoning: [private_monthly]Despite a recent analyst downgrade, DECK still boasts strong fundamentals and looks to have technically found support at around $90. This bullish trade allows us to profit as long as DECK stays over 77.5 by January expiration. This trade has a 85% probability of success as it allows DECK to pullback another 15% and still be profitable. Be sure to adhere to our downside stop to protect against a big loss.
[/private_monthly]
Max Risk: $1125
Max Reward: $125 or 11% by Jan 20
Profit Range: $77.5 +
Downside Stop @: $83
Trade Details:[private_monthly]
STO -5 DECK Jan12 77.5 puts
BTO 5 DECK Jan12 75 puts
for a net credit of $0.25 per contract (GTC, limit order)
Requirements
Cost/Proceeds ($125.00)
Option Requirement $1,250.00
Total Requirements $1,125.00
Estimated Commission $12.95
[/private_monthly]
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