The financials have sold off hard hard hard today. My oopen BRCS I put on yesterday is already up 1.32 so I’m looking out the next month to buy a Put Spread. With the puts so expensive I’m kind of using the BRCS to finance the Put spread. I think the Bears will push the stock to the $25 range by March. I can always sell another BRCS for March to collect even more premium.
We may get a bounce in the next couple of days but I think it will be short lived. The Bears are pressing hard on the financial stocks and I see nothing to make them stop. Even so my risk is limited with the spreads should I be wrong.
The Trade: Debit 1.45
Buy Open: March 30 puts
Sell open March 25 puts
Sean's Trading Journal 