Unprofitable: This trade is unprofitable if DNDN closes under $8.62 by April 20, 2012. The most this spread can be worth is $1 minus the $0.38 I sold it for, so my maximum loss is $0.62. I am risking $62 per 1 lot to make $38 on this spread.
Reason I Like This Trade: When DNDN was trading $9.25, I saw someone sells 6668 DNDN April 9 Puts for $0.95. This is very bullish activity, so I wanted to get LONG the DNDN. I wanted to make a goof risk vs reward trade, so I thought this was a great way to play DNDN to the upside. In Our “LIVE” Trading room talked about this trade in real-time, but have to be in the room to hear to LIVE.
UPDATE 3.9.2012 With DNDN popping the minute these Puts were sold, the Put Spread is currently worth $0.24. Even though this Spread is up about 35%, but I am leaving it on to not chop up myself in commissions.
UPDATE 3.12.2012 With DNDN lack of movement, this Put Spread is worth $.24. Once again I will leave this trade on, so I do not chop myself of commissions.
UPDATE 3.15.2012 With DNDN trading in a small range, time is on my side, so I will leave this trade on for more profit potential.
UPDATE 3.22.2012 With DNDN not selling off to the $9 level, this trade looks safe and the Put Spread is currently worth $.22. I will leave this trade on for more upside profits.
UPDATE 4.9.2012 This spread is currently worth $.08, I am bidding $.05 in the book for it to take profits and move on.
UPDATE 4.16.2012 Another Put Spread that I should have closed, because now it is worth $.38 and I will leave it on hoping for a POP in DNDN between now and Friday.
UPDATE 4.23.2012 I took this spread off a little too early and bought it back for $.13. Taking profits and moving on.
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