Showing posts with label bull put spread. Show all posts
Showing posts with label bull put spread. Show all posts

Thursday, January 14, 2010

Opened ORCL bull position


I've opened a bull position on Oracle (ORCL). The stock price has moved into blue-sky territory on some good technical signals.

My vehicle is a bull put spread that expires on Feb. 19, 36 days from today. The structure of the spread is that I buy a put with a lower price, 25 in this case, and sell a put with a higher strike price, 27 in this case.  The lower strike is below the current trading price, and the higher strike is above it.

The stock was trading at 25.39 when the trade cleared. The bull put spread gave me a credit of 1.20. . . .

Monday, December 7, 2009

Opened HPQ bull put spread at 49.30

I've opened a January bull put spread on HPQ with the underlying trading at 49.30. The spread, which gave me 0.49 in credit, is structured as long the 50s, short the 49s: p50/-p49.

The 50 strike is the highest that has a one-cent spread for HPQ. Above that, it's all 5-cent spreads. So I traded at the money, unusually.