Buy the Jan2013 29/35 call spread for $1.00 with the stock near 24 today
although i like his setup in this case.. the defined risk part of the trade. i dont like his strikes..needs a 50% up move to get a max profit..lots of overhead supply, gap fill.. also needs to make a 25% up move just to break even.. i would tradeoff some of that potential profit by using lower strikes ..maybe like a 25/29 spread and pay a bit more...just because you go out to jan2013 doesnt guarentee it will work out of course..but i dont like being in situations where stock rallies 25% and you still dont make money.. i prefer to have a greater probability of profit vs hitting home runs... might work , might not. see all of scotts on-air trades in this google docs spreadsheet
click-->Follow @Mark_Lexus to follow on twitter
No comments:
Post a Comment