I took advantage of market weakness and a light volume pullback in Very Bullish FSLR today. But given current bearish conditions, high volatility and approaching earnings, I opted for a high probability option spread trade: a risk defined OTM bull put spread. Plus earnings happen right after Feb expiration. With present market conditions, I cut my normal risk of around a thousand bucks in half to .5% on Net Liquidating Value or $500 on all bullish trades. .
Max Risk $500
Credit: .80
Risk: 1.70
Contracts: $500/166=3
Profit Target: $.40
Breakeven: $61,70
Trade Record: SOLD -3 VERTICAL FSLR 100 FEB 16 62.5/60 PUT @.80
Max Risk $500
Credit: .80
Risk: 1.70
Contracts: $500/166=3
Profit Target: $.40
Breakeven: $61,70
Trade Record: SOLD -3 VERTICAL FSLR 100 FEB 16 62.5/60 PUT @.80
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