Today we placed a trade on XLU, this time with a bearish thesis. We did the following:
- Sold 5 of the March 18th 48 CALL for $0.34
- Bought 5 of the March 18th 49 CALL for $0.12
This led to a net $0.22 credit, for a maximum profit of $110, and a maximum loss of $390. Our thesis is that XLU remains BELOW $48.22 by March 18th.
– Michael and Nolan