- Underlying: INTC
- View: Bullish momentum intact, but with overbought RSI (90.33) suggesting potential for near-term consolidation or pullback before further advance. The strategy aims to capture further upside while limiting risk and capital outlay.
- Strategy Type: Debit Spread / Directional Bullish
- Option Contract Portfolio:
- Buy 1 INTC 19 Jun 2026 $87.00 Call @ ~$2.48 (Mid Price)
- Sell 1 INTC 19 Jun 2026 $95.00 Call @ ~$6.87 (Mid Price)
- Max Gain & Loss: Max Gain = $6.39 (Width of spread - Net Debit). Max Loss = Net Debit = $0.61.
- Initial Cost/Credit: Net Debit = ~$0.61 per spread.
- Greek Exposure (Simulated):
- Delta: +0.35 (Moderate positive directional exposure)
- Theta: +0.005 (Slightly positive, benefits from time decay on the short leg)
- Vega: -0.001 (Slightly negative, minor benefit from a drop in the high IV)
- Gamma: ~0.047
- Rho: ~0.001
- Rationale: This strategy is optimal for a cautiously bullish view with high IV (75.76%). Buying a lower strike call provides directional upside. Selling a higher strike call finances the purchase, significantly reducing the net cost and risk, while also adding positive Theta. The high IV percentile (92.03%) makes outright long options expensive; the credit from the short call helps mitigate Vega risk. Profit is maximized if INTC is at or above $95 at expiration, but the low net debit provides a favorable risk/reward for a move towards the $90-$92 resistance zone.
- Time Frame: Medium-Term (~7 weeks to expiration)
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