Option Trading Idea: M&T Bank Corp. (MTB) Bull Put Spread

M&T Bank Corp. (MTB) has managed to gain about half a percent today despite weakness throughout the broad market, especially in the finance group. The SPDR Financial ETF (XLF) is down more than 2%.

MTB Credit Spread Trade Details:

MTB is currently trading at $65.36.

Credit Spread/Bull Put Spread–

• Sell the January 55 put for $1.15 per contract.
• Buy the January 45 put for $0.30 per contract.
• Net credit of $0.85

Profit/Loss Details:

Maximum profit: $0.85 (the credit collected).

Maximum risk: $9.15 (the difference between strikes minus the credit collected). Return on risk is 9.3%.

Breakeven: $54.15 (the strike of the short put minus the premium).

Remember, trading Ideas are generated by the ONN Idea Generating Platform as a starting point for people to begin their own research. Trading ideas are not intended as trading or investment advice or recommendations that any particular security or strategy may be suitable for any specific person. You are solely responsible for your investment decisions, but we hope that some of these ideas will give you a starting point as you look for strategies to employ.

Keep an eye on the “Trading Idea” section of www.ONN.tv for more ideas from nine different option trading strategies, courtesy of the ONN Idea Generating Platform.