free option strategy

Bear Call Spread – Free Trade Idea

Every Friday we give you a free options trade idea identified by Option Party. Today, we’re focusing on the Bear Call Spread .

OPPORTUNITY

There is an attractive bear call spread trade in TILRAY INC. CLASS 2 COMMON STOCK (TLRY). Currently it is trading for $144.85.

CHARACTERISTICS

There is a 92.5% chance the stock will close below 180.00 on 10-19-2018, and you will earn your target return of $58.75. There is a 92.8% chance the stock will close below 180.59 on 10-19-2018, and you will earn a profit. There is a 1.2% chance the stock will close above 200.00 on 10-19-2018, and you will have a total loss of $1,941.25.

ENTRY PLAN

To enter this position you will sell 1 call options expiring on 10-19-2018 with a 180.00 strike price and buy 1 call options expiring on 10-19-2018 with a 200.00 strike price. This will produce a net credit of $0.65. The commission for this trade will be $6.25.

DISCLAIMER

All information presented here is current as of October 12, 2018 12:01 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.