Monday, May 23, 2005

AMED June Bull Call Spread Buy

It looks like AMED oscillates between $30 and $36. I purchased a bull call spread of $25 (buy) and $30 (sell) for $4.45. The profit is 12% (55/445). Breakeven point is $29.45.

June Bull Put Spread Buy

It looks like the stock will likely to stay above $95. I purchased 3 options of spread for a credit of $0.95 (buy $90, sell $95). The profit is 23% (0.95/4.05). Breakeven point is $94.05. Anything lower than that is a go for sell.