Reasoning:
1) Stock is nearing resistance at the same time as the overall market.
2) Stock is in a stagnant long term trend.
Expectation is a resumption of the trend.
Entry Point:
BTO Dec Long Put Strike 115
STO Oct Short Put Strike 115
NET DEBIT of $4.20
Exit Points:
Primary Exit (PE): 100% gain. Looking for stock to trend to support in the 112-115 range.
Secondary Exit (SE):
Bullish: Exit if stock breaks out to the upside. Stop will be around 130.
Trade was filled at 4.2 on Oct 12.
Advertisement
Shorted a NOV 115 put this week for $2 in credit. Oct option had expired worthless. New net debit is now 2.2.
Closed spread on Nov 18 for 3.40 credit. Total profit of 1.2. Trade closed.