New Trade : PAY

Stock / Symbol: Verifone Systems / PAY

Option Strategy: [private_monthly]bull put spread[/private_monthly]
Price at trade post: $35.48

Reasoning: Looking to take advantage of a nearly 37% drop in PAY's stock price from it's recent high. [private_monthly]Putting on a bull put spread here, which allows the stock to drop another 12.5% and still be profitable. If the stock rebounds, we'll look to add a bear call spread, making this an iron condor. If PAY trades down to $32, we'll adjust by rolling to a further out of the money spread.[/private_monthly]

Trade Details:[private_monthly]
STO -4 PAY Jul12 31 puts
BTO 4 PAY Jul12 28 puts
for a min net credit of $0.50 per contract (GTC, limit order)

Cost/Proceeds ($200.00)
Option Requirement $1,200.00
Total Requirements $1,000.00
Estimated Commission $12.95

Max Risk: $1,000
Max Reward: $200 or 20% at/over $31 by Jul12 exp
Profit Range: at/over $30.50 by Jul12 exp
Suggested Downside stop: @ $32

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