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 BAIDU (BIDU). Currently it is trading for $254.48.

CHARACTERISTICS

There is a 93.5% chance the stock will close below 295.00 on 08-17-2018, and you will earn your target return of $141.15. There is a 93.7% chance the stock will close below 295.47 on 08-17-2018, and you will earn a profit. There is a 1.9% chance the stock will close above 310.00 on 08-17-2018, and you will have a total loss of $4,358.85.

ENTRY PLAN

To enter this position you will sell 3 call options expiring on 08-17-2018 with a 295.00 strike price and buy 3 call options expiring on 08-17-2018 with a 310.00 strike price. This will produce a net credit of $0.50. The commission for this trade will be $8.85.

DISCLAIMER

All information presented here is current as of July 27, 2018 2:11 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.