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Re: None

Friday, 04/24/2009 12:46:56 AM

Friday, April 24, 2009 12:46:56 AM

Post# of 541
Want a gamble trade? Here's one that could be a triple in a month---


RF


BUY MAY $5 PUT FOR .60 or less
SELL MAY $4 PUT for .25 or more


Net debit = $.35. $35 will get you each spread. That's your total risk. If you buy 100, it will cost you $3500. However, if RF is at $4 or less come late May, then you make a $6500 profit.

Do the math accordingly.

Why would RF fall? Well, they are square in the eye of the stress test. This could be a pretty good risk/reward.

Just do 10. $350 to make $650. Not bad.

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