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 NETFLIX (NFLX). Currently it is trading for $373.41.

CHARACTERISTICS

There is a 92.8% chance the stock will close below 425.00 on 09-21-2018, and you will earn your target return of $152.45. There is a 92.3% chance the stock will close below 425.76 on 09-21-2018, and you will earn a profit. There is a 1.4% chance the stock will close above 450.00 on 09-21-2018, and you will have a total loss of $4,847.55.

ENTRY PLAN

To enter this position you will sell 2 call options expiring on 09-21-2018 with a 425.00 strike price and buy 2 call options expiring on 09-21-2018 with a 450.00 strike price. This will produce a net credit of $0.80. The commission for this trade will be $7.55.

DISCLAIMER

All information presented here is current as of August 31, 2018 11:27 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.