Break-even: I break-even on this trade if DELL closes at $15.45 on June 15, 2012.
Unprofitable: I lose money on this trade if DELL closes above $15.45 June 15, 2012. The most I can lose on this trade is the amount I paid can be worth $1 minus the price I sold it for, $.45 for a total of $.55.
Reason I Like This Trade: DELL has sold off 3 times on earnings and the stock looks very weak and has all its moving averages between $15.80-$16.20. I think if it does rally then it will get selling pressure.
UPDATE 5.22.2012 With DELL selling off to $13.40 this Spread will get crushed. Tomorrow it should be worth about $.10 or even less good for a quadruple.
UPDATE 5.24.2012 I took this trade off for $.02 and a HUGE profit. On to the next trade.
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