- Selling to Open 50 VXX Jul 2012 $14.00 Puts
- Buying to Open 50 VXX Jul 2012 $13.00 Puts
- Net Credit: $23.00 per bull put spread for a total of $1,150.00
- Max Gain: $1,150.00
- Max Risk: -$77.00 per bull put spread for a total risk of -$3,850.00
Investors should prepare for increased volatility in the markets after weeks of relative calm.
Options can help limit an investor's downside losses, especially during periods of increased volatility and uncertainty in the market.
Here's a technical look at how to trade some of the most active stocks on the market right now.