Rocket INTC Call Credit Spread 01-21-21
New Trade - INTC Call Credit Spread
INTC has earnings tonight. Options are pricing in just over a 5% move in either direction, or about a $3.20 move. INTC is currently trading at $59.16.
Selling a call credit spread above the market. INTC just popped higher on the news of their new CEO, but they've got a lot of work to do to catch up to AMD and I see the stock consolidating or trading lower.
Both options expire Friday Jan 22nd in INTC:
Sell the $59 call
Buy the $60 call
You should collect a credit of about $0.43 with both legs of this trade. Our max risk is $57 per contract. Our max profit is the $43 we collect up front.
We are looking for INTC to trade flat to marginally lower on their numbers. INTC is currently trading at $59.17. We achieve a max profit if INTC closes below $59 tomorrow. We achieve a max loss if INTC closes above $60 tomorrow.
Selling a call credit spread above the market. INTC just popped higher on the news of their new CEO, but they've got a lot of work to do to catch up to AMD and I see the stock consolidating or trading lower.
Both options expire Friday Jan 22nd in INTC:
Sell the $59 call
Buy the $60 call
You should collect a credit of about $0.43 with both legs of this trade. Our max risk is $57 per contract. Our max profit is the $43 we collect up front.
We are looking for INTC to trade flat to marginally lower on their numbers. INTC is currently trading at $59.17. We achieve a max profit if INTC closes below $59 tomorrow. We achieve a max loss if INTC closes above $60 tomorrow.
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