Put Butterfly on SPY on 3/7/2013

SPY,The Trust's Holdings are comprised of the 500 stocks in the S&P 500 Index, which is designed to capture the price performance of a large cross-section of the U.S publicly traded stock market. The main objective of the fund is to replicate the total return of the S&P 500 Index. The SPDR Trust, Series 1 seeks to match the total return of the S&P 500 Index. To accomplish this, the trust utilized a full replication approach. With this strategy, all 500 securities of the S&P 500 Index are owned by the Trust in their approximate market capitalization weight.

Stockwinners is bearish on this name for the follwing reasons:

1. With Dow jones at records highs and S&P 500 close to it's 2007 all time high, It makes sense to lay out a trade like this, to protect any gains captured so far to benefit from any possible correction. Maket is way over due for a small correction before making new highs .
2. The trade has enough time to play out . chances are market is going to have some bad days in the next two months!
3. The trade has an attractive risk/ reward ratio and has a wide range to be profitable . S&P must be within 1550 and 1450 for this trade to be profitable.

Trade: Buy 1 April 155/150/145 Put Butterfly for less than $.92

Trade Buy 1 April $155.00 Put at $2.78 Sell 2 April $150.00 Put at $1.21 Buy 1 April $145.00 Put at $0.56 For a net debit of $0.92 Profit/Loss Analysis Breakeven at $145.92 and $154.08 Maximum profit is $408.00 at strike of $150.00 Maximum loss is ($92.00) at strike of $155.00 Closing Summary Sold 1 April $155.00 Put at $1.04 Bought 2 April $150.00 Put at $0.06 Sold 1 April $145.00 Put at $0.01

Position closed on 4/18/2013 at price of $0.93 with a 1.09% gain in 41 days.

Updates

4/18/2013 1:53:58 PM

April options expire tommrow hence we are closing this position for even money.

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