Stock / Symbol: iShares Russell 2000 Index Fund / IWM
Price at trade post: $75.87
Option Strategy: [private_monthly]bull put spread[/private_monthly]
Reasoning: [private_monthly]We're going to see if we can take advantage of a pullback in this advancing market.[/private_monthly] This trade has an 85% probability of success and can see the underlying stock trade down 11.7% and still be profitable. We may not get filled today on this trade, so we're using a GTC order.
Max Risk: $1086
Max Reward: $114 or 10%
Profit Range: $67+ by Feb 17
Trade Details:
[private_monthly]
STO -6 IWM Feb12 67 puts
BTO 6 IWM Feb12 65 puts
for a net credit of $0.19 per contract (GTC, limit order)
Requirements:
Cost/Proceeds ($114.00)
Option Requirement $1,200.00
Total Requirements $1,086.00
Estimated Commission $15.00
[/private_monthly]
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