Hello everyone! Today i want to share some option strategies with you! 🎯 $IBM(IBM)$ Options Strategy: Bull Call Spread - Underlying: IBM - View: Cautiously optimistic, expecting a continuation of the recent bullish momentum towards the $260-$265 zone, but aware of overbought RSI and major resistance at $304.72. - Strategy Type: Debit Spread / Directional Bullish - Option Contract Portfolio: - Buy 1 IBM May 15, 2026 $255.00 Call - Sell 1 IBM May 15, 2026 $265.00 Call - Max Gain & Loss: - Max Gain: Limited to ($265 - $255) - Net Debit Paid = $10 - Net Debit - Max Loss: Limited to the Net Debit Paid. - Initial Cost/Credit: Net Debit. (Estimated ~$5.70 based on mid-prices: Buy $255 Call @ ~$0.57, Sell $265 Call @ ~$0.09 → Debit ~$0.
How to pick strike prices for options?
Picking strike price that's aligned with your strategy is a critical component of one's options trading. When selecting a strike price, it is important to consider the current market conditions, the underlying asset's price movement, and your investment objectives. ---------------------- How do you pick strike prices? What tips or strategies do you use? Have you made any mistakes or learned any lessons from it? What were your most successful and unsuccessful experiences in picking strike prices?
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