Demo-trading:
SELL 12 IWM January 65 Put (@0.86)
BUY 12 IWM January 63 Put (@0.58)
Credit: $0.28 (0.28 * 100 * 12 = $336)
Margin: $1.72 (1.72 * 100 * 12 = $2064)
Break-even point(s): 64.73 (Currently at 72.25, markets would have to fall by roughly 10.4% from here)
Probability of success: 84.01%
Days to expiration: 35
Max return on margin: 16.28%
Commissions: $36.00 (Assuming Interactive Brokers' schema for Canadians)
(Click on Image to enlarge)
Reflecting a maximum return of $336 vs a Maximum Risk of $2064. And about 4 out of 5 chances for the whole position to be successful.
Check out demo-record
Related articles:
Weekend Thoughts(December 17, 2011)
Weekend Thoughts (December 23, 2011)
Weekend Thoughts (January 1, 2012)
Weekend Thoughts (January 7, 2012)
Weekend Thoughts (January 15, 2012)
Weekend Thoughts (January 21, 2012)
SELL 12 IWM January 65 Put (@0.86)
BUY 12 IWM January 63 Put (@0.58)
Credit: $0.28 (0.28 * 100 * 12 = $336)
Margin: $1.72 (1.72 * 100 * 12 = $2064)
Break-even point(s): 64.73 (Currently at 72.25, markets would have to fall by roughly 10.4% from here)
Probability of success: 84.01%
Days to expiration: 35
Max return on margin: 16.28%
Commissions: $36.00 (Assuming Interactive Brokers' schema for Canadians)
(Click on Image to enlarge)
Reflecting a maximum return of $336 vs a Maximum Risk of $2064. And about 4 out of 5 chances for the whole position to be successful.
Check out demo-record
Related articles:
Weekend Thoughts(December 17, 2011)
Weekend Thoughts (December 23, 2011)
Weekend Thoughts (January 1, 2012)
Weekend Thoughts (January 7, 2012)
Weekend Thoughts (January 15, 2012)
Weekend Thoughts (January 21, 2012)
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