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 MICRON TECHNOLOGY  (MU). Currently it is trading for $53.39.

CHARACTERISTICS

There is a 94.1% chance the stock will close below 65.00 on 06-15-2018, and you will earn your target return of $160.35. There is a 94.2% chance the stock will close below 65.08 on 06-15-2018, and you will earn a profit. There is a 2.9% chance the stock will close above 67.50 on 06-15-2018, and you will have a total loss of $4,589.65.

ENTRY PLAN

To enter this position you will sell 19 call options expiring on 06-15-2018 with a 65.00 strike price and buy 19 call options expiring on 06-15-2018 with a 67.50 strike price. This will produce a net credit of $0.10. The commission for this trade will be $29.65.

DISCLAIMER

All information presented here is current as of May 21, 2018 9:56 am (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.