"I Beat The Market Trading 1 Day Per Week. Learn How."

Steven Brooks dominates the market buying stocks for a 99% discount and getting paid to do so!

Join Steven for a FREE training session and learn Steven's secret to timing his trades to see massive returns.

Hurry, seating is extremely limited.

Join Now

Allergan, Inc. operates as a multi-specialty health care company primarily in the United States, Europe, Latin America, and the Asia Pacific. This stock has been on fire and is breaking through the 52 Week highs. Today we saw a very interesting trade where a trader bought 1000 AGN July 140 Calls for $5.84 and then sold 1000 July 115 Puts to reduce the cost of the trade. This is known as a “Risk Reversal” and lets break this trade down a little more. A trader will get long 100,000 Shares at two different levels: $115 and $140. This trader has a breakeven of this trade at $142, but lets look at it a little bit in more depth.

The Trade: Trader bought 1000 AGN July 140 Calls and Sold July 115 Puts for $2.00 debit
Their Risk: $117,000
Their Reward: Unlimited
Breakeven: $142

Between $115-$140: Trader will lose Cash outlay of $200,000

Under $115 and Above $140, Trader will become Long 100,000 Shares of Stock

Andrew Keene
http://keeneonthemarket.com

Pin It on Pinterest

Share This

$7 Options Master Strategy

Check out trading tycoon, Serge Berger, as he reveals the master of all options strategies below.

Watch Now

Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy