free option strategy

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.

OPPORTUNITY

There is an attractive bull call spread trade in ENERGOUS CORPORATION COMMON ST (WATT). Currently it is trading for $28.54.

CHARACTERISTICS

There is a 73.4% chance the stock will close above 22.50 on 01-19-2018, and you will earn your target return of $567.15. There is a 75.3% chance the stock will close above 21.93 on 01-19-2018, and you will earn a profit. There is a 12.7% chance the stock will close below 17.50 on 01-19-2018, and you will have a total loss of $4,417.95.

ENTRY PLAN

To enter this position you will buy 10 call options expiring on 01-19-2018 with a 17.50 strike price and sell 10 call options expiring on 01-19-2018 with a 22.50 strike price. This will require a net debit of $4.40. The commission for this trade will be $17.95.

DISCLAIMER

All information presented here is current as of December 29, 2017 10:35 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.