Break-even: I breakeven on this trade if CEDC closes at $4 by April 20, 2012 and at $3.65 by May 18, 2012.
Unprofitable: I lose money on this trade if CEDC closes under $4 by April 20, 2012 and above $3.65 by May 18, 2012. The most I can lose on this trade is the Price of the Spread, $.35.
Reason I Like This Trade: I like selling front month premium and buying back month premium with only a few days to go until expiration. In this strategy, I will make money as long as CEDC does not rip higher between now and Friday, because the April options will decay faster than the May options.
UPDATED 4.23.2012 On Friday, I announced in the LIVE trading room that I sold my May 4 Puts for $.60 and the April Puts expired worthless, so I turned $.35 into $.60 for another HUGE winner at KOTM.
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