Bull Put Spread – Free Trade Idea

OPPORTUNITY

There is an attractive bull put spread trade in Amgen (AMGN). Currently it is trading for $179.70.

CHARACTERISTICS

There is a 92.7% chance the stock will close above 162.50 on 03-31-2017, and you will earn your target return of $290.15. There is a 92.8% chance the stock will close above 162.28 on 03-31-2017, and you will earn a profit. There is a 1.9% chance the stock will close below 155.00 on 03-31-2017, and you will have a total loss of $9,459.85.

ENTRY PLAN

To enter this position you will buy 13 put options expiring on 03-31-2017 with a 155.00 strike price and sell 13 put options expiring on 03-31-2017 with a 162.50 strike price. This will produce a net credit of $0.24. The commission for this trade will be $21.85.

DISCLAIMER

All information presented here is current as of March 3, 2017 12:59 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.


How Did We Do? The Results…

This trade employed a Bull Put Spread strategy that needed AMGN to close above $162.50 on March 31, 2017 to earn the targeted return. AMGN closed at $164.07 which resulted in a return of $290.15.