Option Alert: Buy NXPI call spread
We are buying following debit call option spread, NXPI will be announcing earnings after market close today. Expected return 200% by tomorrow.
Read more about Debit spreads here
Take this action:
Buy NXPI Feb 04, 2022 $210 Calls
Sell NXPI Feb 04, 2022 $212.5 Calls
Debit spread difference should be : $0.80 or less
Entry cost: $80 for 1 spread, you can buy 5, 10, 20 or 30 lots based on your risk tolerance
Maximum risk: $80 at a price of $210.00 or less at expiry
Maximum return: $170 at a price of $212.5 at expiry, i.e 200+% returns
Sell the spread early morning tomorrow. Don't wait for alert.
-Alpha Staff
Note: Options can expire worthless. So you must be willing to risk 100% of what you put into trades. Don’t risk funds you cannot afford to lose.