Opening up a put spread in ESV

This morning I set up a June 50/49 credit put spread in Ensco (ESV). When I put it on the stock was slightly in the money as it was trading around $49.60. And since it was ITM, I collected a hefty .57 on 10 contracts, totaling $550 after commissions.

As you can see this is an aggressive play. I'm playing it for a bounce back up to around the $52 range. Once I hit that point I'm out. This is why I played 10 contracts in the money, because I'm hoping to book a decent profit from the small move back to $52.

The company pays a FAT 6% yield that is well covered by it's free cash flow. Additionally, ESV has a $2 billion share repurchase program to provide additional support to the stock price.