Tuesday, July 1, 2008

Aug XSP



XSP trades at 1/10th of $SPX, S&P.
Analyze a Bull PUT Spread
Buy August 114 PUT for 1.03
Sell Aug 116 PUT for 1.27
Credit = .24 for a 2 dollar spread.
Return about 12% before commission
This position enters risk should XSP fall all the way down to 116

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