click on the link with the arrow to see Peter talk about this strategy--he is one of the best people to explain things--he talks in a way that is easy to understand, sometimes he adds a little story and it is fun to hear about different strategies even if that is not your current pick.
do you think bull call spread is a favorite with a lot of people, or what? do you think it applies well to our current market trend?
copied from the cboe website:
Strategy Discussion
Bull Call Spread
Example: Stock is trading at $68
Outlook: You are bullish on the stock and expect it to rise over the next four weeks.
Possible strategy: Bull Call Spread
Buy one 70 strike Call at $3.60
Sell one 75 strike Call at $2.00
Net Debit (cost) $1.60
Buy one 70 strike Call at $3.60
Sell one 75 strike Call at $2.00
Net Debit (cost) $1.60
For more information on the risks and benefits of this strategy Click Here
what is your favorite option strat? please comment.......
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