Hey guys,
I am trading TROW stock with a long call vertical spread to take advantage of leverage with limited risk and greater profit potential. For example, I am buying a vertical call by buying the 105 call and selling the 115 call, October 19th 2019. This is a 10.0 dollar move which equals 1,000$ profit - how much I pay for the option (4.19 per contract =419$ investment). My max risk is 419$ and my max profit is 581$. My option expires October 19, 2019 and is good way to take advantage of time with larger potential profit (123% potential) as long as the stock stays above 109.19$; The stock has to make a 3.9% move in our direction (going up). This is considered low risk as it could easily reach 4-5% within 1-2 months from here.
The upward wedge technical makes me think that stock should be making steady gains in the next 1-2 months.
I am trading TROW stock with a long call vertical spread to take advantage of leverage with limited risk and greater profit potential. For example, I am buying a vertical call by buying the 105 call and selling the 115 call, October 19th 2019. This is a 10.0 dollar move which equals 1,000$ profit - how much I pay for the option (4.19 per contract =419$ investment). My max risk is 419$ and my max profit is 581$. My option expires October 19, 2019 and is good way to take advantage of time with larger potential profit (123% potential) as long as the stock stays above 109.19$; The stock has to make a 3.9% move in our direction (going up). This is considered low risk as it could easily reach 4-5% within 1-2 months from here.
The upward wedge technical makes me think that stock should be making steady gains in the next 1-2 months.
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Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.