Post feedLast Nights Credit Spreads
In last nights credit spread presentation I discussed two potential set-up's. Normally we have a bullish trade and a bearish trade depending on everyones outlook on the market. Here are the candidates we looked at.
Bull Put Spread on the Semiconductor Index (SOX.X)
If the SOX gives a nice bounce off support, we talked about entering a trade as follows
Buy Oct 440 put
Sell Oct 445 put
Bear Call Spread on CAT
Yesterday was a confirmation of a Desceding Triangle with new resistance at $45
Buy Oct 70 call
Sell Oct 65 call
If you still feel there is a good risk reward in these trades, fire away. CAT made a nice move this morning, but the SOX hasn't given us an entry signal yet. Keep an eye on it for a bounce.
Bull Put Spread on the Semiconductor Index (SOX.X)
If the SOX gives a nice bounce off support, we talked about entering a trade as follows
Buy Oct 440 put
Sell Oct 445 put
Bear Call Spread on CAT
Yesterday was a confirmation of a Desceding Triangle with new resistance at $45
Buy Oct 70 call
Sell Oct 65 call
If you still feel there is a good risk reward in these trades, fire away. CAT made a nice move this morning, but the SOX hasn't given us an entry signal yet. Keep an eye on it for a bounce.
What about your risk reward?
Risk: Unlinited
Reward: $1
Jeff, wasn't your R/R on the CAT trade 1:1?
BJ
Posted by
Anonymous |
9/25/2006 10:21:00 AM