Bull Call Spread (11 Jul 11)

TO ALL:

Here are the “potential trades” for next week:

Bull Call Spread (ETFs)

A Bull Call spread is a debit spread created by purchasing a Call with a lower strike price and selling a Call with a higher strike price.  Both options expire in the same month.  This is a bullish strategy and should be implemented when you expect the market to close above the strike price of the short Call option—the point of maximum reward (at expiration).   

GLD $150.25

Buy to Open (1) Aug 11 146 C @ $5.55

Sell to Open (1) Aug 11 151 C @ $2.49 

Net Debit: $3.06 ($306.00)

Breakeven: $149.06

Max. Profit: $194.00

Pct Return: 63.4% (41 days)

SPY $134.40

Buy to Open (1) Aug 11 132 C @ $4.40

Sell to Open (1) Aug 11 137 C @ $1.40 

Net Debit: $3.00 ($300.00)

Breakeven: $135.00

Max. Profit: $200.00

Pct Return: 66.7% (41 days)

DIA $126.39

Buy to Open (1) Aug 11 124 C @ $3.90

Sell to Open (1) Aug 11 129 C @ $0.96 

Net Debit: $2.94 ($294.00)

Breakeven: $126.94

Max. Profit: $206.00

Pct Return: 70.1% (41 days)

IWM $85.13

Buy to Open (1) Aug 11 82 C @ $4.34

Sell to Open (1) Aug 11 87 C @ $1.26 

Net Debit: $3.08 ($308.00)

Breakeven: $85.08

Max. Profit: $192.00

Pct Return: 62.3% (41 days)

XLE $76.89

Buy to Open (1) Aug 11 74 C @ $4.20

Sell to Open (1) Aug 11 79 C @ $1.23 

Net Debit: $2.97 ($297.00)

Breakeven: $76.97

Max. Profit: $203.00

Pct Return: 68.4% (41 days)

All positions displayed are for educational purposes only and are not intended to be recommendations.