- Underlying: GE
- View: Bullish momentum intact, but overbought (RSI 82.65) and at a 52-week high. Expectation of a potential pullback or consolidation before a resumption of the uptrend. Strategy is designed to be bullish but risk-defined, capitalizing on a move higher while limiting exposure to a sharp reversal.
- Strategy Type: Debit Spread / Directional Bullish
- Option Contract Portfolio:
- Buy 1 GE 2026-07-02 370.0 Call @ $6.50 (mid-price)
- Sell 1 GE 2026-07-02 380.0 Call @ $3.80 (mid-price)
- Max Gain & Loss:
- Max Gain: (380.0 - 370.0) - Net Debit = $10.00 - $2.70 = $7.30 per spread
- Max Loss: $2.70 per spread (Net Debit)
- Initial Cost/Credit: Net Debit of $2.70 per spread
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