TRADE IDEA: WFC OCTOBER/JULY 22.5/35 LONG CALL DIAGONAL
Another financial that has recovered some, but probably has some room to run back to pre-COVID-19 levels .... .
Metrics:
Max Loss on Setup: $918
Max Profit on Setup: $332
Break Even: 31.68 versus 32.63 spot
Debit Paid to Spread Width Ratio: 73.44%
Notes: I like to do these split month, but there's no September available, so had to go out to October to buy the 90. Manage like a covered call, rolling the short call out on extrinsic approaching worthless and, if necessary, down (but not past) your break even.
Metrics:
Max Loss on Setup: $918
Max Profit on Setup: $332
Break Even: 31.68 versus 32.63 spot
Debit Paid to Spread Width Ratio: 73.44%
Notes: I like to do these split month, but there's no September available, so had to go out to October to buy the 90. Manage like a covered call, rolling the short call out on extrinsic approaching worthless and, if necessary, down (but not past) your break even.
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