
Rocket DKNG Call Spread 11-12-20
DKNG $41 - $44 Call Spread
Draftkings has earnings tomorrow before the bell.
DKNG is trading at $41.00.
We are going to buy a call spread from $41 to $44.
Buy the $41 call that expires tomorrow November 13th.
Sell the $44 call. We cap our profits at $44 and use the proceeds to offset some of our costs.
The entire trade should cost about $1.00. Our breakeven becomes $42.00.
Our max loss is $100 per contract. Our max profit is $200 if DKNG closes above $44 tomorrow.
DKNG is trading at $41.00.
We are going to buy a call spread from $41 to $44.
Buy the $41 call that expires tomorrow November 13th.
Sell the $44 call. We cap our profits at $44 and use the proceeds to offset some of our costs.
The entire trade should cost about $1.00. Our breakeven becomes $42.00.
Our max loss is $100 per contract. Our max profit is $200 if DKNG closes above $44 tomorrow.


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