Break-even: I break-even on this trade if JPM closes at $36.60 on June 15, 2012.
Unprofitable: I lose money on this trade if JPM closes under $36.60 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, $.40 for a total of $.60.
Reason I Like This Trade: JPM has sold off on some terrible news about their investments. I want to take a Bullish stance, but I do not want to risk too much money. If this strategy I can make if JPM is flat, goes down less than 1% or rallies.
UPDATE 5.14.2012 With a sell-off in the stock market and JPM this Put Spread has increased to $.49 in value. I will leave this Spread on and not look to add as I think JPM has plenty of time between now and June to rally back.
UPDATE 5.15.2012 With the stock rallying back today, this Spread is currently worth $.44. I will leave this Spread on as I think JPMorgan sell-off might be overdone.
UPDATE 5.16.2012 This Spread is still worth $.45, but I will leave it on, because I am making an even movey bet that the stock will rally by June expiration.
UPDATE 5.21.2012 With more JPM news coming out everyday I am glad that I didnt not a big position as this Spread is now worth $.80. I will leave this on for a potential bounce higher.
UPDATE 5.22.2012 This spread is worth $.75 and I should probably take it off as I think that JPM and the stock market are headed
UPDATE 5.24.2012 Since this spread can only go to $1, I will leave it on, but not add to it at all, because the banks look so weak.