NYSE Euronext (NYSE: NYX) bear call spread

NYSE Euronext (NYSE:NYX) shares have broken down below their 200-day moving average and the 50-day currently sits at $24.50. As trading volumes dwindle and the broad market looks poised for lackluster trading ranges until Eurozone uncertainty and Fed exit strategies have more clarity, selling call spreads on the exchanges may be one way to create additional option trading income.

NYX Credit Spread Trade Details:

NYX is currently trading at $23.07.

Credit Spread/Bear Call Spread–

• Sell the February 24 call
• Buy the February 25 call
• Net credit of $0.21 per spread

By opening a free virtual trading account with OptionsHouse, you could build a profit/loss diagram to help visualize this trade.

Profit/Loss Details:

Maximum Profit: $0.21 (the credit collected). This excludes commissions, though exit commissions will not be required if both calls expire worthless.

Maximum Risk: $0.79 (the difference between strikes minus the credit collected). Reward on risk is approximately 27% in 11 days.

Breakeven: $24.21 (the strike of the lower call plus the premium collected).

For more on NYX:

Nasdaq OMX profit grows even as revenue falls

Business events scheduled for the coming week

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