Trade Adjustment : PAY

Stock / Symbol: Verifone Systems / PAY

Option Strategy: [private_monthly]bull put spread[/private_monthly]
Trade entry date: May 31
Price at trade entry: $35.48
Price at this adjustment: $31.30

Current Position:[private_monthly]
Short -4 PAY Jul12 31 puts
Long 4 PAY Jul12 28 puts
at a net credit of $0.50 per contract

Reasoning: Our stop was triggered, so we're going to adjust by [private_monthly]rolling to a further out of the money Oct spread. We looked at rolling to the Jul12 29/26 spread but don't like the odds at just 64%. So, with the adjustment, we'll be short the Oct 25 puts and long the 22 puts. At a -.20 Delta, the short 25 puts have 68% chance of expiring out of the money and give us much more room to the downside. This is now a salvage trade.[/private_monthly]

Trade Adjustment Details:[private_monthly]
BTC -4 PAY Jul12 31 puts
STC 4 PAY Jul12 28 puts
STO -4 PAY Oct12 25 puts
BTO 4 PAY Oct12 22 puts
for a max net debit of $0.50 per contract. Try to get filled closer to the mid of the spread though (current bid is -0.10 and ask is -0.60. (GTC, limit order)

Max Risk: $1,000
Max Reward: $35 or 3% over $25 by Oct12 exp
Profit Range: over $25 by Oct12 exp
Suggested Downside stop: @ $26
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