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 $413.73.

CHARACTERISTICS

There is a 95.6% chance the stock will close below 525.00 on 07-20-2018, and you will earn your target return of $43.75. There is a 95.7% chance the stock will close below 525.44 on 07-20-2018, and you will earn a profit. There is a 2.6% chance the stock will close above 540.00 on 07-20-2018, and you will have a total loss of $1,456.25.

ENTRY PLAN

To enter this position you will sell 1 call options expiring on 07-20-2018 with a 525.00 strike price and buy 1 call options expiring on 07-20-2018 with a 540.00 strike price. This will produce a net credit of $0.50. The commission for this trade will be $6.25.

DISCLAIMER

All information presented here is current as of June 22, 2018 10:59 am (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.