A news credit spread trader

Ok the title is a play on words because this is a new to me credit spread trader that seems to place trades based on the news. Personally I try to avoid the news in making plays but I’ll follow some plays here to see the results.  Here is one play posted yesterday that I find interesting —> Office Depot (ODP) NewsBite - Office Depot Tumbles on Pessimistic Outlook

An April bear-call credit spread above the $20 level on Office Depot. ODP stock could rise up to 32.5% before expiration and this position would still be profitable. The news of Office Depot warning poor 4th quarter performance especially in the states of California and Florida means this company is not looking to become bullish for quite some time.

No Tags