Wednesday, April 4, 2012

Trade: Sold Apr CF 170/165 Credit Put Spread

Was looking to reenter the 160/155 spreads from this previous post, but the premium wasn't there on today's pullback. Willing to raise up the short strike because of how much I like this setup.  Shooting against the rising trendline, the 20-day & 50-day smas, as well as the lower Bollinger band.  In addition, the current max pain strike is at 179.  OptionsHouse puts the probability of max profit of this trade at 87.6%.

Sold CF Apr 12 170/165 put spreads for ($0.88-$0.48) x 100 x 4 spreads = $170 premium received

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