SPY looks like it reached the top of the bullish run. Its time to place a neutral to bearish diagonal. If price settles below $78 on expiration there will be a minimum profit of $15 due to the credit. Potentially the trade can make up to ~$600 if the price settles at $78.
STO 3 SPY 78 April Call $3.70
BTO 3 SPY 81 May Call $3.65
Credit of $.05
Max risk is $885
Adjustment point will be when price reaches $79.5.
Friday, March 20, 2009
SPY Bearish Diagonal Spread
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