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 NVIDIA  (NVDA). Currently it is trading for $244.55.

CHARACTERISTICS

There is a 93.7% chance the stock will close below 285.00 on 03-16-2018, and you will earn your target return of $147.15. There is a 93.5% chance the stock will close below 285.49 on 03-16-2018, and you will earn a profit. There is a 1.8% chance the stock will close above 300.00 on 03-16-2018, and you will have a total loss of $4,352.85.

ENTRY PLAN

To enter this position you will sell 3 call options expiring on 03-16-2018 with a 285.00 strike price and buy 3 call options expiring on 03-16-2018 with a 300.00 strike price. This will produce a net credit of $0.52. The commission for this trade will be $8.85.

DISCLAIMER

All information presented here is current as of February 16, 2018 1:52 am (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.