Unprofitable: I lose money on this trade if APOL closes above $35.30 June 29 on, 2012. The most I can lose on this trade is the amount the Spread can be worth $1 minus the price I sold it for $.30 for a total of $.70.
Risk: $70 per 1 lot
Reward: $30 per 1 lot
Chart: Bearish overall has seen selling pressure above this
Notes: I am playing to the downside and I will make money on this trade if the stock goes down, flat, or up less than 8% on earnings. It is currently implying a 11% move tonight.
UPDATE 6.26.2012 This Spread is now worth $.48, but it is all over the place. I think APOL can sell off under the $35 level.
UPDATE 6.27.2012 This Spread and stock sold off this morning and I could have covered it for $.39, but for some reason I left it on. I will look to take off half if the stock moves lower.
UPDATE 7.2.2012 I am glad that I did not add to this position, because this Spread went to the whole value, $1. Moving to the next trade for earnings.
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