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September 23, 2013

$GMCR Weekly Trade

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  • Strategy: Bull Put Spread
  • Underlying: GMCR
  • Trade: SELL -1 VERTICAL GMCR 100 (Weeklys) OCT2 13 70/65 PUT @.35 LMT
  • Trade Price: .35¢ credit per spread
  • Margin: $4.65 per spread
  • Return on Risk: 7.52%
  • DTE: 18
GMCR is down over 6% today and is currently under 50 day moving average. It has traded several times under 50d SMA and was able to find buyers. We're thinking this down move might be stretched and we should see buyers step in. To limit our downside we're going to use 74 level as potential stop, so risking about $50 to make $35 per spread.