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+--- Thread: Call Spreads Nov 16th & Dec 21st... (/showthread.php?tid=4921)
Call Spreads Nov 16th & Dec 21st... - johnwgrant - 10-22-2013
Anyone have any insights into the over 2500 call spread positions opened today - both Nov 16 & Dec 21st ?!?!
Are they bull or bear spreads !?!?
RE: Call Spreads Nov 16th & Dec 21st... - TxPm - 10-22-2013
These are Bull spreads where the writer will profit up to the $105 strike price where the upper calls were written. This strategy limits downside loss bc the $105 calls help pay for the $80 calls and profit is only "given up" if the stock breaks through the $105 level.
My guess is that the $105 level was used bc this is roughly the 52 week high on the stock. This could also be a short hedging out some SD risk for Nov/Dec without having to close out the shorts
Just my initial thoughts