CALENDAR SPREAD
-1 $133 CALL 10/28
+1 $133 CALL 11/04
Approx. cost: $0.85.
I have a hunch that FB's earnings will be surprisingly positive. But that doesn't mean the stock will shoot up by a double-digit percentage. I'm thinking it just means it won't fall.
If the stock does shoot way up or way down, a calendar spread can only lose the original debit.
Plus, there's a nice little bonus in it if, at close 10/28, the price stays under $133 (but as close as possible to it!) and the short call expires worthless.
Another idea for a similar sentiment would be a butterfly spread:
+1 $140 Call 10/28 Exp Buy
-2 $135 Call 10/28 Exp Sell
+1 $130 Call 10/28 Exp Buy
Cost would be around $0.45.
-1 $133 CALL 10/28
+1 $133 CALL 11/04
Approx. cost: $0.85.
I have a hunch that FB's earnings will be surprisingly positive. But that doesn't mean the stock will shoot up by a double-digit percentage. I'm thinking it just means it won't fall.
If the stock does shoot way up or way down, a calendar spread can only lose the original debit.
Plus, there's a nice little bonus in it if, at close 10/28, the price stays under $133 (but as close as possible to it!) and the short call expires worthless.
Another idea for a similar sentiment would be a butterfly spread:
+1 $140 Call 10/28 Exp Buy
-2 $135 Call 10/28 Exp Sell
+1 $130 Call 10/28 Exp Buy
Cost would be around $0.45.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.