New Trade – put spread

Stock / Symbol: [private_monthly]Amex SPDR Energy Select Index / <a ticker=”NYSE%3AXLE” href=”http://www.wikinvest.com/stock/Select_Sector_SPDR_Fund_-_Energy_Select_Sector_(XLE)” target=”_blank” articletitle=”WExF_0″ articletype=”company” class=”wikinvest-suggestion-link”>XLE</a>[/private_monthly]

Price at trade post: $75.49

Option Strategy: put spread

Reasoning: We’re going to hedge our long energy positions with a put spread on [private_monthly]XLE[/private_monthly]

Max Risk: $206

Max Reward: $394 or 91% by Jul 15th

Profit Range: $0 – $73.97

Max Profit at: $0 – $72

Trade Details:

[private_monthly]

BTO 2 XLE Jul11 75 Puts

STO -2 XLE Jul11 72 Puts

For a net debit of $1.03 per contract

Requirements:

Cost/Proceeds    $206.00

Option Requirement    $0.00

Total Requirements    $206.00

Estimated Commission    $12.95

[/private_monthly]