Stock / Symbol: JC Penney / JCP
Option Strategy: [private_monthly]bear call spread[/private_monthly];
Price at trade post: $14.47
Reasoning: With it's fundamental challenges, and expecting JCP to hit resistance at its 50 day average, I'm putting on a[private_monthly]bear call spread[/private_monthly]. This trade's Greeks are: -91 delta, 3.4 theta, and -3.6 vega. The probability of success on this trade is 70%. If JCP trades [private_monthly]up to $15.65, we'll either stop out of the trade or adjust it.[/private_monthly]
Trade Details:[private_monthly]
STO -5 JCP Oct13 16 calls
BTO 5 JCP Oct13 18 calls
for a min net credit of $0.30 per contract. (day order, limit order). The current mid is $.29. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($150)
Option Requirement $850
Total Requirements $850
Estimated Commission $15
[/private_monthly]
Max Risk: $850
Max Reward: $150 or 17%[private_monthly] between $0 and $16[/private_monthly] by Oct 18[private_monthly]
Profit Range: 0 to $16.06 by Oct 18
Suggested Upside stop: @ $15.65
Suggested Downside stop: NA
[/private_monthly]
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