F Options Strategy: Bull Call Spread
Hello everyone! Today i want to share some option strategies with you!
🎯$Ford(F)$ Options Strategy: Bull Call Spread
- Underlying: F
- View: Bullish momentum building, targeting $13.82 resistance, with near-term consolidation expected (RSI ~73.58).
- Strategy Type: Debit Spread / Directional Bullish
- Option Contract Portfolio:
- Buy 1 F May 15, 2026 $13.00 Call
- Sell 1 F May 15, 2026 $14.00 Call
- Max Gain & Loss: Max Gain = $1.00 - Net Debit; Max Loss = Net Debit.
- Initial Cost/Credit: Debit of ~$0.25 (estimated from chain data: Buy $13C @ ~$0.40, Sell $14C @ ~$0.15).
- Greek Exposure (Simulated):
- Delta: +0.30 (Moderate positive directional exposure)
- Theta: -0.005 (Small negative, time decay is a minor cost)
- Vega: +0.02 (Slight positive, benefits if IV rises from consolidation)
- Gamma: +0.05 (Moderate sensitivity to price moves near expiration)
- Rho: +0.001 (Minimal interest rate sensitivity)
- Rationale: This strategy aligns with the bullish view for a move towards $13.82, while the sold $14 call caps upside at a key resistance level, reducing initial cost. The short call also provides a small positive Theta effect to partially offset the long call's decay. It balances Delta (direction) with defined risk. Profit requires F to be above $13.25 at expiration. The May 15 expiry provides time for the anticipated consolidation and subsequent breakout.
- Time Frame: Short-Term (3.5 weeks to expiry)
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