Unprofitable: I lose money on this trade if JOY closes under $52.78 or above $57.22 on June 15, 2012. The most I can lose on this trade is the amount I paid for the Spread, $.28.
Reason I Like This Trade: I think that JOY will sell off on earnings and I I think it could sell off to $55 based on the 7.1% implied movement in the stock. I think this represents a great risk vs reward as I am risking only $28 per 1 lot and could make $222. Earnings are today after the bell.
UPDATE 5.31.2012 I was trying to take off half of my position for a a double, or $.56. This trade is up 50% overnight, but I am leaving it on in order to maximize more value.
UPDATE 6.4.2012 This Spread is still worth $.56, so I am trying to take off half of the position for a double and leave the other half on.
UPDATE 6.5.2012 This Spread has not increased in value as I thought it would decay more. I still like this Spread though.
UPDATE 6.7.2012 This Spread is Out of the Money right now and looked like a great trade, but has gone Rogue. I am leaving this trade on for more possible downside in JOY and the stock market.
UPDATE 6.11.2012 JOY has been all over the place and right now this Spread is worth $.60, I am looking to take half of my positon off and let the other half ride until expiration.
UPDATE 6.13.2012 I took half of my position off at $.60 taking a double and I am leaving the other half on for more future profits. I will leave this half on until expiration.
UPDATE 6.27.2012 I took off the other half for $1.80 on expiration, averaging $1.20 and took five time my money on a great risk vs reward on earnings.
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