Bull Call Spread – Free Trade Idea
There is an attractive bull call spread trade in Netflix (NFLX). Currently it is trading for $147.81.
There is a 65.5% chance the stock will close above 141.00 on 04-21-2017, and you will earn your target return of $2,385.85. There is a 70.0% chance the stock will close above 138.83 on 04-21-2017, and you will earn a profit. There is a 15.0% chance the stock will close below 130.00 on 04-21-2017, and you will have a total loss of $9,699.25.
To enter this position you will buy 11 call options expiring on 04-21-2017 with a 130.00 strike price and sell 11 call options expiring on 04-21-2017 with a 141.00 strike price. This will require a net debit of $8.80. The commission for this trade will be $19.25.
All information presented here is current as of March 31, 2017 1:05 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.
How Did We Do? The Results…
This trade employed a Bull Call Spread strategy that needed NFLX to close above $141.00 on April 21, 2017 to earn the targeted return. NFLX closed at $142.87 which resulted in a return of $2,385.85.