Unprofitable: I lose money on this trade if SPY closes above $134.25 June 1, 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, $.25 for a total of $.75.
Reason I Like This Trade: I think the SPY is in a “Sell the Rally” mode, so I want to get short on any rally. I make money on this trade if the SPY goes down, flat, or up a little bit
UPDATE 5.29.2012 With time on my side, even with a nice rally today in the stock market, this Spread is only worth $.28. I like selling premium in the weeklies. I will leave this Spread on as I think every rally in the stock market is a sale.
UPDATE 5.30.2012 With the stock market selling off, this Spread is currently worth $.16, but I am still leaving it on for more potential profits.
UPDATE 5.31.2012 I took this spread off today for $.03, it was not worth risking $97 to make $.03 Another winner at KOTM
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