+2 April 2015 $178 puts at $3.32 (debit)
-4 April 2015 $174 puts at $2.24 (credit)
max credit: $1.16 x 2 x 100 = $232
"max" profit: $232 + ($178 - $174) (2) (100) = $1032
Why did I place this trade?
- stochastics in overbought region
4/2/2015 (12:35:15 pm, PT)
sell (to close) the 2 long puts ($178) at $2.29
buy (to close) the 4 short puts ($174) at $0.95
(net debit of $0.39)
Why did I close this trade?
- the net profit was higher than the original "credit" of $232
- I had a "feeling" DIA would not close below $174 on expiration Friday
- TAKE PROFITS!
NET PROFIT: $300.65
Success!
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