Wednesday, April 20, 2016

#7 Short Call Spread on ADBE
Expiration: June 16 (58 days out)
ATM:  $96.28
Sell 100 Strike Call
Buy 105 Strike Call
Credit: $1.16
Close the order for 30 cents
The reason for this trade:  Adobe announced earning about a month ago with a large gap up.  The resistance for the stock is at $98 and this is the one year high level.  I do not expect the stock to go above the 100 short strike call.
Delta for the short call is 34%.  A little more than max 32% plan.

No comments:

Post a Comment