Hey guys,
I am trading TROW stock with a long call vertical spread to take advantage of leverage with limited risk and greater profit potential. For example, I am buying a vertical call by buying the 105 call and selling the 115 call, October 19th 2019. This is a 10.0 dollar move which equals 1,000$ profit - how much I pay for the option (4.19 per contract =419$ investment). My max risk is 419$ and my max profit is 581$. My option expires October 19, 2019 and is good way to take advantage of time with larger potential profit (123% potential) as long as the stock stays above 109.19$; The stock has to make a 3.9% move in our direction (going up). This is considered low risk as it could easily reach 4-5% within 1-2 months from here.
The upward wedge technical makes me think that stock should be making steady gains in the next 1-2 months.
I am trading TROW stock with a long call vertical spread to take advantage of leverage with limited risk and greater profit potential. For example, I am buying a vertical call by buying the 105 call and selling the 115 call, October 19th 2019. This is a 10.0 dollar move which equals 1,000$ profit - how much I pay for the option (4.19 per contract =419$ investment). My max risk is 419$ and my max profit is 581$. My option expires October 19, 2019 and is good way to take advantage of time with larger potential profit (123% potential) as long as the stock stays above 109.19$; The stock has to make a 3.9% move in our direction (going up). This is considered low risk as it could easily reach 4-5% within 1-2 months from here.
The upward wedge technical makes me think that stock should be making steady gains in the next 1-2 months.
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.