Financed Spread Trade Idea for a 12/16 Expiration
"Financed Spread" idea.
12/16 Expiration.
Bullish, or 'bottom-is-in' trade. The idea is to sell a short put and use the credit from the short put to cover the debit of a bullish call spread.
Sell(-) $47.5 Call 12/16.
Buy(+) $45 Call 12/16.
--{Current Share Price: $43}--
Sell(-) $35 Put 12/16.
The credit will be around $80 and the collateral will be $3500.
The trade allows for a 18.7% decrease in price .
The max gain of $330 hits at a 10.7% increase in price, at $47.50.
12/16 Expiration.
Bullish, or 'bottom-is-in' trade. The idea is to sell a short put and use the credit from the short put to cover the debit of a bullish call spread.
Sell(-) $47.5 Call 12/16.
Buy(+) $45 Call 12/16.
--{Current Share Price: $43}--
Sell(-) $35 Put 12/16.
The credit will be around $80 and the collateral will be $3500.
The trade allows for a 18.7% decrease in price .
The max gain of $330 hits at a 10.7% increase in price, at $47.50.
Comment:
Financed VERTICAL is what I meant to call it...