$MKC Options Bull Call Spread: Debit $3.80, Max Profit $120 by 2026-04-17 📊

$McCormick(MKC)$ Options Bull Call Spread: Debit $3.80, Max Profit $120 by 2026-04-17 📊

Contracts:

• 🟢 Buy to Open: 1 × $50 Call, Expiry 2026-04-17 @ $4.10

• 🔴 Sell to Open: 1 × $55 Call, Expiry 2026-04-17 @ $0.30

Financials:

• Net Debit: $3.80 ($4.10 - $0.30)

• Max Gain: $120 (Strike width $5 - Net Debit $3.80 x 100)

• Max Loss: $380 (Net Debit $3.80 x 100)

Thesis:

Cautiously bullish on $McCormick(MKC)$ into April 17 expiration. Stock rebounding from early-April lows with strong call skew (3.43) and high IV percentile (85.2%). This spread caps risk while keeping moderate positive delta and limited vega exposure. Break-even at $53.80 — spot price ~$53.71 aligns with modest continuation higher.

Execution & Risk Management:

• Target profit: $120 if $McCormick(MKC)$ closes ≥ $55 by expiry.

• Stop loss: Cut position if spread value drops ≤ $1.90 (50% of max risk).

• Avoid holding through unscheduled volatility; structure already limits max loss to $380 per spread.

⚠️ Disclaimer: This is not financial advice. Options trading involves significant risk and may result in loss of capital. Past performance does not guarantee future results. Always do your own research and consult a qualified financial advisor before making investment decisions.