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 DIREXION DAILY GOLD MINERS BUL  (NUGT). Currently it is trading for $25.31.

CHARACTERISTICS

There is a 93.1% chance the stock will close below 33.00 on 04-20-2018, and you will earn your target return of $186.15. There is a 93.4% chance the stock will close below 33.14 on 04-20-2018, and you will earn a profit. There is a 1.2% chance the stock will close above 37.00 on 04-20-2018, and you will have a total loss of $5,013.85.

ENTRY PLAN

To enter this position you will sell 13 call options expiring on 04-20-2018 with a 33.00 strike price and buy 13 call options expiring on 04-20-2018 with a 37.00 strike price. This will produce a net credit of $0.16. The commission for this trade will be $21.85.

DISCLAIMER

All information presented here is current as of February 16, 2018 11:24 am (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.