🎯 $eBay Inc.(EBAY) Options Strategy: Bull Call Spread (Debit Spread)
- Underlying: EBAY
- View: Cautiously optimistic for a test of the $101.80 resistance level, with a neutral-bullish short-term bias.
- Strategy Type: Debit Spread / Directional
- Option Contract Portfolio:
- Buy 1 EBAY 19 Dec 2026 $100.00 Call
- Sell 1 EBAY 19 Dec 2026 $110.00 Call
- Max Gain & Loss: Max Gain = $6.00; Max Loss = $4.00
- Initial Cost/Credit: Debit of ~$4.00 (using mid-prices from chain: ~$10.43 - ~$6.43)
- Greek Exposure (Simulated):
- Delta: +0.30 (Moderate positive directional bias)
- Theta: -0.001 (Slightly negative, minimal daily time decay)
- Vega: +0.02 (Slight positive exposure to volatility increase)
- Gamma: ~0.005
- Rho: ~0.015
- Rationale: This strategy aligns with the view of a potential move higher, targeting the $101.80-$110 zone over the medium term. It capitalizes on the extremely high IV Percentile (97.61%) by purchasing long-dated options where Vega exposure is beneficial if IV remains elevated or increases. The sold $110 call reduces the net cost, defines maximum profit, and provides a positive Theta component relative to a naked long call. It offers a favorable 1.5:1 risk/reward ratio.
- Time Frame: Medium-Term (8 months to expiry)
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