🎯 $Ford Motor Company (F) Options Strategy : Bull Call Spread
- Underlying: F
- View: Cautiously Bullish (Breakout with high RSI, expecting consolidation or a push to $14+)
- Strategy Type: Debit Spread (Directional, Limited Risk)
- Option Contract Portfolio:
- Buy 1 F Jun 18, 2026 $13.50 Call @ $0.48 (Mid: ~$0.485)
- Sell 1 F Jun 18, 2026 $15.00 Call @ $0.12 (Mid: ~$0.125)
- Max Gain & Loss: Max Gain: $114 per spread (($1.50 spread - $0.36 debit) * 100). Max Loss: $36 per spread (net debit paid).
- Initial Cost/Credit: Net Debit: ~$0.36 per share.
- Greek Exposure (Simulated):
- Delta: +0.214 (Positive, directional bullish exposure)
- Theta: -0.008 (Slight negative time decay, but much lower than a long call alone)
- Vega: +0.002 (Slightly positive, but minimal vega exposure due to spread structure)
- Gamma: +0.164 (Positive near the strike)
- Rho: +0.001 (Minimal)
- Rationale: This strategy is optimal given the bullish breakout but extremely overbought RSI (79.51). It provides defined, limited risk and lower cost than a naked long call. The positive Delta captures further upside towards $15, while the short $15 call caps gains, reduces premium paid, and lowers negative Theta. It balances directional bias with capital efficiency and risk control, ideal for a scenario expecting a move higher but with high volatility (IV 52.57%).
- Time Frame: Short-Term (to Jun 18 expiry).
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