Monday, May 4, 2009

First Option Spread Trade

Time to do my first options spread trade. I decided to do a Bear Call Spread with best buy. The stock looks like it is going to hit resistance at $40 and trade down for a little bit. I bought the May 41 Calls and Sold the May 40 Calls. If the trade goes as planned this should be a 23% ROI. We will see if this trade works out.

No comments: