Bull 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 bull call spread.
There is an attractive bull call spread trade in NVIDIA (NVDA). Currently it is trading for $257.10.
There is a 65.2% chance the stock will close above 247.50 on 06-08-2018, and you will earn your target return of $1,011.25. There is a 70.1% chance the stock will close above 244.13 on 06-08-2018, and you will earn a profit. There is a 13.6% chance the stock will close below 230.00 on 06-08-2018, and you will have a total loss of $4,223.85.
To enter this position you will buy 3 call options expiring on 06-08-2018 with a 230.00 strike price and sell 3 call options expiring on 06-08-2018 with a 247.50 strike price. This will require a net debit of $14.05. The commission for this trade will be $8.85.
All information presented here is current as of May 11, 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.