Rocket KSS Bull Call Spread 11-16-20
KSS buy $26.50-$31 call spread at a cost of about $1.15
We are going to buy a call spread looking for Kohl's to trade higher on their earnings tomorrow before the open.
Buy the Nov 20th KSS $26.50 call
Sell the Nov 20th KSS $31 call
This should result in debit (cost) of $1.15 per contract pair. Our max loss is about $115 per contract pair and our max profit is $335. Our breakeven will be $27.65. KSS is trading at $26.06. Options are pricing in an expected move on earnings of $2.77. We are the ones paying the premium in this trade. We are absorbing premium in the previous HD and WMT trades in the prior update.
Buy the Nov 20th KSS $26.50 call
Sell the Nov 20th KSS $31 call
This should result in debit (cost) of $1.15 per contract pair. Our max loss is about $115 per contract pair and our max profit is $335. Our breakeven will be $27.65. KSS is trading at $26.06. Options are pricing in an expected move on earnings of $2.77. We are the ones paying the premium in this trade. We are absorbing premium in the previous HD and WMT trades in the prior update.