Break-even: I breakeven on this trade if KMX closes at $32.45 or $36.55 by April 20, 2012
Unprofitable: I lose money on this trade if KMX closes under $32.45 or above $36.55 by April 20, 2012. The most I can lose on this trade is the Price of the Spread, $1.00 minus the price I sold it for $.55 for a total of $.45 per 1 lot.
Reason I Like This Trade: I like selling premium instead of buying it for earnings. This trade is an even money bet that KMX will close between $32.45-$36.55
UPDATE 4.9.2012 This spread is currently worth $.45, but I think that it has more potential profits if the stock can get some legs and rally so I will this trade on.
UPDATE 4.16.2012 Another trade that I am glad I took off right after earnings for $.45, becuase the stock has sold off even more after the fact. Moving on to the next trade.
UPDATE 4.23.2012 I DID NOT HAVE THIS POSITION ON, BUT IT EXPIRED ON FRIDAY AT FULL VALUE, $1. MOVING TO THE NEXT TRADE.