*****UPDATE***** 5/20/12

AS OF THIS WEEKEND, I AM KICKING MYSELF FOR NOT ENTERING THE TRADE WHEN I HAD THE CHANCE AT 4.00CREDIT ON MAY 9.

IT IS NOW SITTING AT 1.92 DEBIT TO CLOSE.

THE TRADE WOULD HAVE BEEN UP MORE THAN 50% SINCE  MAY 8 ORIGINAL IDEA POST.

FAZ Last Chg Bid Ask Vol
FINANCIAL BEAR 3X SHARES ETF 28.67 +0.93 28.65 28.75 23,167,086
Leg 1 Leg 2 Price Duration
Action Buy to Open
Buy to Close
Sell to Open
Sell to Close

Contracts
Option

FAZ Jun 16 2012 28.00 Put

Modify

Action Buy to Open
Buy to Close
Sell to Open
Sell to Close

Contracts
Option

FAZ Jun 16 2012 23.00 Put

Modify

Market
Credit
Debit

Even

Day Order
GTC
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Quote FAZ   28.67   0.93 Bid 28.65 Ask 28.75 Volume 23,167,086
FAZ JUN 16 2012 28.00 PUT
FAZ JUN 16 2012 23.00 PUT
Bid 2.42 0.49
Ask 2.43 0.52
Last 2.39 0.51
Change -0.42 [-14.95%] -0.08 [-13.56%]
Volume 1,820 522
Delta -0.41 -0.17
Open Int 193 1,125
Desc FAZ Jun 16 2012 28.00 Put FAZ Jun 16 2012 23.00 Put
Net Quote
Bid
1.90debit
Mid
1.92debit
Ask (natural)
1.94debit

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As of tonight, I was planning a Deep In the Money FAZ credit spread play, but decided it wasn’t quite ready to be put on just yet. After analysis tonight of all my information sources, I changed my mind as it led me to believe we may bounce a little from here.  As of tonight the 23-28 Jun16 bull put credit spread is around 4.00 credit, but may wait a little while longer and get in around a strike spread range of 22-27, or 21-26 for 4.00 credit instead. That’s only if we get a temporary rally from here. I still believe the summer doldrums will appear and prudent to wait for a better entry instead of the 23-28 bull put spread.

With a 4.00 credit on one of those set of strikes breakeven would only be 1.00 above the lower bought strike price. For example if I actually put in for the 23-28 Jun16 bull put credit spread and fills @4.00 credit, FAZ would only have to be 24.00 to breakeven @expiry, and anything higher up to 28.00 would be all profit.

This would leave each spread at 100 max loss but max gain of 400 if FAZ rallies above the upper sell strike. Later on, when eventually feel like putting this on, I will update the trade idea and new set of strikes/expiry.

Order Details

Leg Action Option Description Price
Leg 1 Buy to Open FAZ Put FAZ Jun 16 2012 23.00 Put Credit 4.00
Leg 2 Sell to Open FAZ Put FAZ Jun 16 2012 28.00 Put
Net Quote
Bid (natural)
3.85credit
Mid
3.99credit
Ask
4.13credit
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