Wednesday, August 7, 2013

Initiated $AIG October Bear Call Spread (Roll-up of a troubled spread)

Lost  $419 in a Aug $AIG Credit Spread.  Received $450 for this spread to offset the loss.  I believe I was somewhat early in this trade.


Bear Call Spread
AIG
Sell to Open (price of the option you are selling):2.01
Strike Price:$48
Buy to Open (price of the option you are buying):$1.56
Strike Price (lower):$49
Amount of SHARES you are using:1000
Margin Requirement (Maximum Risk):-$1450
Credit Received:$450[*net MAXIMUM gain for the trade…]
31.03%
Percent Return on Risk Amount

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