Trade idea
SPCE call diagonal spread
The bullish diagonal spread on SpaceX involves buying the AUG210 call and selling the July 230 call, resulting in a $14.25 debit. The trade is designed to profit from a price movement within the strike width of $20, offering a favorable risk-reward ratio. The strategy is suitable for traders who expect limited price movement and are bullish on the stock.
View full notes
Strategycall diagonal spread
Assetequity
Expiration2021-08-20
Time horizonShort-term, with a potential for profit within the strike width
Entry / triggerStock trading around $190 with a $14.25 debit
Target / exitPrice movement within the strike width of $20
Invalidation / stopSignificant price movement against the trade
SpeakerSpeaker
Structure / legs
- buy AUG210 call
- sell July 230 call
Risks
- Limited profit potential if the stock doesn't move within the strike width
- Higher risk if the stock moves significantly against the trade
high confidenceVerify in video at 33:26 ↗