Unprofitable: I lose money on this trade if SPY closes under $129.10 or above $132.90 June 5, 2012. The most I can lose on this trade is the amount the Spread can be worth $3 minus the price I sold it for $1.00 for a total of $3.00.
Reason I Like This Trade: I like this trade, because I am selling today’s rally in the stock market, but I am not buying premium. I make money of the stock market comes back to reality and sells back to the 1300 level. If it rallies higher, I defined my risk vs reward and will move to the next trade.
UPDATE 6.13.2012 This Spread looked much better this morning, but it is currently worth $1.10. Since it is not a LONG premium position, I will leave it on for more future potential profits.
UPDATE 6.27.2012 With time against me, I took this Spread off at $.87 and moving to the next trade. I saw the stock market finding buyers at the $131 level, so I knew it was time to move on
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