Unprofitable: I lose money on this trade if TLT closes between $123.34-$126.66 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 the TLT and 10 year interest rates have been moving so much. This trade will be profitable in either direction of stock as long as the stock moves and it has been moving a lot in the last couple of days. Also, we have HUGE economic data today including Beige Book, Jobless Claims tomorrow, Ben Bernanke speaking tomorrow, and International Trade on Friday
UPDATE 6.7.2012 With a suprise and lack of movement after the Bernanke comments, this Spread is now only worth $1.30 and I am debating to take it off and punt it or leave it on for one more day.
UPDATE 6.8.2012 I sold stock against my Straddle at $126.72 and then when stock sold off I sold the Puts for $.05 locking in profits at $1.82 on the Straddle. Took a little sweat on this one, but another winner at #KOTM.