Stock Symbol: [private_monthly]AMZN[/private_monthly]
Option Strategy: bear call spread
Max Profit:$88
Max Risk: $412
Max Return: 18% (accounts for commissions)
Profit Range: $0 - $165
Reasoning: Although it's been a strong performer, [private_monthly]AMZN[/private_monthly] is technically near a top. As long as [private_monthly]AMZN[/private_monthly] stays under $165 from here by Oct 15th, we'll net a 18% return in about 15 days.
Trade Details:
[private_monthly]
Sell -1 AMZN OCT10 165 CALL @ $1.78 ($178.00) Credit
Buy 1 AMZN OCT10 170 CALL @ $0.90 $90.00
Requirements:
Cost/Proceeds ($88.00) Credit
Option Requirement $500.00
Total Requirements $412.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
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