*****UPDATE 5/14*****

I CLOSED OUT THE HD TRADE TODAY FOR A 73.7% GAIN. HD IS WELL KNOWN FOR SLIGHTLY BEATING EARNINGS, AND FIGURED WOULD NOT RISK LOSING ON THIS TRADE. BEING UP ALMOST 74% WAS  A COMFORTABLY NICE RETURN, AND CASHED OUT MY WINNINGS. THE HD PLAY WAS ORIGINALLY OPENED ON 4/20/12.

MAXIMUM GAIN POSSIBLE WAS 3.02

MAXIMUM LOSS POSSIBLE WAS 1.98

THE TRADE WAS SOLD TO CLOSE @.94 CREDIT + THE ALREADY EXISTING EXISTING .52 CREDIT RECEIVED TO PUT ON THE TRADE = .94+.52= 1.46 OR $146 GAIN PER SPREAD

AS USUAL MY PLAYS LATELY ARE VERY SMALL AND WELL DIVERSIFIED. I MADE $146 X 4 CONTRACT SPREADS = $584 PROFIT OFF OF $198 X 4CONTRACT SPREADS, OR 792 AT RISK.

NOT BAD FOR A SMALL TRADE!

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In home depot got PAID .52cents credit or 52dollars times
4 contracts each leg =52×4=208 dollars to put on the trade.
sold50call  bot 52.50 call sold 50 put bot 52.50 put

Strike   50              52.50                  50                  52.50

49        0                0                          (1)                  3.50           3.50-(1)+.52 credit=3.02

50        0                0                           0                   2. 50           2.50+.52 credit=3.02

51       (1)               0                           0                   1.50          (1)+1.50+.52 credit=1.02

52       (2)               0                           0                   .50           (2)+.50+.52 credit= (.98)loss

52.50  (2.50)      0                            0                    0               (2.50)+.52 credit= (1.98)loss

53       (3)              .50                         0                    0               (3)+.50+.52 credit= (1.98)loss
I got in at .52cents credit on 4/20
I wont take any losses and still breakeven as long as HD finishes 51.52 @may 19 expiry

On this trade max loss will be 2.50-.52credit received which equals= 1.98 if 52.50 or more @may19 expiry.

Max gain will be 2.50+.52credit received which equals= 3.02 if 50 or less @may19 expiry on a trade I got paid to put on.

Thanks and good trading
Creditspread23

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