Unprofitable: I lose money on this trade if SPY closes under $125.75 or above June 8, 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 $.25 for a total of $.75.
Reason I Like This Trade: I like this trade, because I can make money if the stock market rallies, is flat, or goes lower. The SPY can sell off another 2% and I still make money on this trade. This $126 level would take us to unchanged on the year.
UPDATE 6.4.2012 With the SPY unchanged, this Spread is currently worth $.25 and I will leave it on, because in 5 days it will hopefully expire worthless.
UPDATE 6.5.2012 With SPY rallying today I took half of my position off for a double, I bought the Spread for $.12. Leaving the other half on, but taking some profits.
UPDATE 6.7.2012 With the SPY rallying hard, this Spread is worthless. Obviously no trade is a winner until it is closed, but I will leave this trade on so I dont have to waste money in commissions.
UPDATE 6.11.2012 This Spread went out worthless and moving to the next trade.
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