Today in Finance Club, we placed a new trade on International Paper. We sold a call spread on IP, with a bearish thesis that IP will remain below $38.25 by March 18th. The trade is as follows:
- Sold 3 of the March 18th 2016 38 Call for $0.35
- Bought 3 of the March 18th 2016 39 Call for $0.10
This is for a net credit of $0.25, with a maximum profit of $75 and a maximum loss of $225.
– Michael and Nolan