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Topic	Stock Topic 7
red sox 777 07/07/20 1:38:48 AM #345:	So do I have this right- if BBBY goes above $12.50, both puts expire worthless and you lose the net premium of $110. If BBBY stays below $11, the put you bought is worth $150 more than the put you sold, so you make $150 - $110 = $40. If BBBY is between $11 and $12.50, your profits linearly decline from $40 at $11 to a loss of $110 at $12.50. The breakeven point is $11.40. I have no idea really if that's a good trade. For a retailer with a stock price around $11, I don't think the earnings report would have to be very good for the stock to moon. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! <cite>red sox 777 posted [p:941780441] in Stock Topi... [t:78792868]...</cite> <quote>So do I have this right- if BBBY goes above $12.50, both puts expire worthless and you lose the net premium of $110. If BBBY stays below $11, the put you bought is worth $150 more than the put you sold, so you make $150 - $110 = $40. If BBBY is between $11 and $12.50, your profits linearly decline from $40 at $11 to a loss of $110 at $12.50. The breakeven point is $11.40. I have no idea really if that's a good trade. For a retailer with a stock price around $11, I don't think the earnings report would have to be very good for the stock to moon. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest!</quote> ... Copied to Clipboard!
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