AEP - May '18 Exp. Put Vertical Credit Spread
Trade details:
65/60 Put Vertical Credit Spread @ $1.00
Prob. of Max Profit = 70.13%
Prob. of Max Loss = 10.10%
Break-even @ $64.00
119 D.T.E.
Trade plan:
Entry by oversold + support/resistance analysis
Expecting $68.00 support level to survive possible test before earnings report next week for an uptrend continuation before May '18 expiration.
Using longer duration for some more premium + allow for adjustment if trade goes very wrong.
Expecting spread to expire worthless but will take early profit + place new trade with same bias around earnings if IV swells premium up enough to give a greater edge.
65/60 Put Vertical Credit Spread @ $1.00
Prob. of Max Profit = 70.13%
Prob. of Max Loss = 10.10%
Break-even @ $64.00
119 D.T.E.
Trade plan:
Entry by oversold + support/resistance analysis
Expecting $68.00 support level to survive possible test before earnings report next week for an uptrend continuation before May '18 expiration.
Using longer duration for some more premium + allow for adjustment if trade goes very wrong.
Expecting spread to expire worthless but will take early profit + place new trade with same bias around earnings if IV swells premium up enough to give a greater edge.
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