Break-even: I break-even on this trade if WSM closes at $35.40 on June 15, 2012.
Unprofitable: I lose money on this trade if WSM closes above $35.40 June 15, 2012. The most I can lose on this trade is the amount I paid can be worth $3 minus the price I sold it for, $1.60 for a total of $1.40.
Reason I Like This Trade: WSM has sold off the last 4 times, so I think it will continue. Also, I will not lose money on this trade even if it rallies, because I am selling premium.
UPDATE 5.22.2012 Part of the reason I liked this trade is because I think the stock market is headed lower. I will leave this Spread on as it closed worth $1.30
UPDATE 5.24.2012 I talked about this yesterday in the LIVE trading room, I took off half the position at $1.65 and I still in the other half and it is worth $1.25
UPDATE 5.29.2012 I am glad I took half of my position off for a profit and I am leaving the other half on, but the stock continues to work higher.
UPDATE 5.30.2012 With a sell-off in the stock market today, I took the other half of my position off at $1.35 for a net of $1.50. Time to move on to the next trade.
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