{"id":14133,"date":"2024-03-18T11:10:16","date_gmt":"2024-03-18T15:10:16","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=14133"},"modified":"2024-03-18T11:10:16","modified_gmt":"2024-03-18T15:10:16","slug":"entered-an-amd-bull-call-spread","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=14133","title":{"rendered":"Entered an AMD Bull Call Spread"},"content":{"rendered":"<p>Today I entered an AMD<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.mainstbeatswallst.com\/?page_id=14105\"> Bull Call Spread<\/a><\/span> that will expire this Friday. I continue to study this strategy, trying positions with both In-the-Money and Out-of-the-Money positions, or a combination of one of each. Today&#8217;s position I went with an In-the-Money Long Call and a Short Call that was At-the-Money. That Strike Price is $192.50 and that is where the stock was when I sold that Call.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong>3\/18\/24 \u2013 Buy 2 AMD 3\/22\/24 $187.50 C @ $8.06<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>3\/18\/24 \u2013 Sell 2 AMD 3\/22\/24 $192.50 C @ $5.60<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>Net Cost = ($2.46)<\/strong><\/p>\n<p>This <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.mainstbeatswallst.com\/?page_id=14105\">Bull Call Spread <\/a><\/span>has a Net Cost of ($2.46). I bought the $187.50 Long Call for $8.06 and I sold the $192.50 Short Call at $5.60. The difference in the two Strike Prices is $5. Remember, the Maximum profit comes when the stock closes above the Short Call&#8217;s Strike Price which is $192.50. If that happens you calculate the profit by taking the difference between the Strike Prices and subtracting the Net Cost of $2.46. $5 &#8211; \u00a0$2.46 = $2.54. The total profit is $2.54 times 200 because of the 2 contracts, which is $508. Let&#8217;s hope the stock closes above $192.50 at the close of Friday. As I write the stock is at $192.20.<\/p>\n<p>This would be a Return on Investment (ROI) of 206.5%<\/p>\n<p>Any questions on this strategy send me an email.<\/p>\n<p>&nbsp;<\/p>\n<p>Successful trading,<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today I entered an AMD Bull Call Spread that will expire this Friday. I continue to study this strategy, trying positions with both In-the-Money and Out-of-the-Money positions, or a combination of one of each. Today&#8217;s position I went with an In-the-Money Long Call and a Short Call that was At-the-Money. That Strike Price is $192.50 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-14133","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3FX","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14133"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14133\/revisions"}],"predecessor-version":[{"id":14134,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14133\/revisions\/14134"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}