Entered O with Jan17 55/50 Credit Spread for net premium of .78.
Spread entered instead of naked put for account leverage.
Break even - 54.22
Stop - 52.41
R:R 2:1
Plan A: Receive .78 credit (ROI: 18.5%)
Plan B: Get put shares, hold stock for monthly dividend. Exit all at 58.26.
Plan C: If the ascending trend line fails to support stock I will look to exit aggressively on the retest.
***Note*** O has gotten hit pretty hard but pays a monthly dividend and just increased it. I do not might owning shares down at this level
Spread entered instead of naked put for account leverage.
Break even - 54.22
Stop - 52.41
R:R 2:1
Plan A: Receive .78 credit (ROI: 18.5%)
Plan B: Get put shares, hold stock for monthly dividend. Exit all at 58.26.
Plan C: If the ascending trend line fails to support stock I will look to exit aggressively on the retest.
***Note*** O has gotten hit pretty hard but pays a monthly dividend and just increased it. I do not might owning shares down at this level