Rocket Nike and FDX Trades 03-18-21
2 Options Trades for NKE and FDX Earnings Tonight
NKE Mar 19 Debit Call Spread $146 - $157.50
We are buying a simple call spread from $146 to $157.50 in Nike. We will pay the premium to have upside potential in Nike from the $146 to $157.50 price range.
Nike is trading at $144.78 and has earnings after the bell. The options that expire tomorrow are pricing in about a $7.00 move in either direction.
Both legs expire tomorrow March 19th.
Buy the NKE $146 call
Sell the NKE $157.50 call
The debit (cost) to execute both trades is about $2.50 or $250. Our max loss is $250 and our max profit is about $900 if NKE trades all the way above $157.50 by tomorrow.
This is an out of the money call spread and we lose everything if NKE trades flat to anywhere lower tomorrow.
We are buying a simple call spread from $146 to $157.50 in Nike. We will pay the premium to have upside potential in Nike from the $146 to $157.50 price range.
Nike is trading at $144.78 and has earnings after the bell. The options that expire tomorrow are pricing in about a $7.00 move in either direction.
Both legs expire tomorrow March 19th.
Buy the NKE $146 call
Sell the NKE $157.50 call
The debit (cost) to execute both trades is about $2.50 or $250. Our max loss is $250 and our max profit is about $900 if NKE trades all the way above $157.50 by tomorrow.
This is an out of the money call spread and we lose everything if NKE trades flat to anywhere lower tomorrow.
FDX Credit Call Spread $280 - $285
We are selling a credit call spread above the market in FDX from $280 to $285 and will collect about a $1 credit with about $4 at risk. FDX is currently trading at $267.03. Options are pricing in about a $15 move on earnings tonight. We will look to absorb some of that premium above the market.
Both legs expire tomorrow March 19th.
Sell a FDX $280 call
Buy a FDX $285 call
Collect about a $1 credit when initiating both legs of this pair.
We are selling a credit call spread above the market in FDX from $280 to $285 and will collect about a $1 credit with about $4 at risk. FDX is currently trading at $267.03. Options are pricing in about a $15 move on earnings tonight. We will look to absorb some of that premium above the market.
Both legs expire tomorrow March 19th.
Sell a FDX $280 call
Buy a FDX $285 call
Collect about a $1 credit when initiating both legs of this pair.
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