Options Oracle: 05/31/2012

This is a simple cash secured put position that will allow us to take in $2.10 of premium to our account. Selling puts places us in an obligation to buy the stock at the strike price should the stock close below that strike price on expiration day. Someone is willing to pay us $2.10 a share to buy the stock at $50. This gives us a break-even point of $47.90. As you can see from the chart, there is a role reversal support level at $50, which gives us a cushion. Below that you can see support around $44.

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About AJ Monte

As a premier trading consultant, AJ is one of the most sought after in his field. He teaches professionals specialized techniques on how to accumulate and protect wealth through innovative market techniques. TheMarke__404+

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