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Friday, March 4, 2011

AAPL/BAC Trade

Sell 1 Apple Jan 12 265 put for $11.10 (1,110 per contract)

Use the proceeds to buy 10 BAC Jan 13 12.5/15 vertical call spreads for 1.24.

Total Cost: $130 (will need to set aside around 2,500 in margin on the short Apple put)

Max Profit: $1,110 if Apple is above 265 on Jan 12 and $1,260 if BAC is above $15 in Jan 2013 for a total of $2,360.

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