WHR 18NOV BULL COMBO

[IgorKeymaster]

WHR at 144.09

I’m going to set up a call debit spread with 38 days until expiration and I am also going to sell a put credit spread to cover the initial outlay for this trade.

This trades takes up $1,000 of margin (less any credit upfront) to put this trade on.

Right now this trade is going for about 0.25 NET credit.

Here are the outcomes:

1. I will stop out below 130 and will possibly lose $300 per combo
2. If we’re between 130 and 150, I will get to keep the 0.25 credit
3. If we’re above 155 at expiry, this combo will make $500 + $25 or $525 on about $975 of risk.

This trade has an implied probability of profit around 67%

Risk Profile:

Order Ticket:

[IgorKeymaster]

WHR at 134

This stock is pretty weak here and earnings are coming out after the close today.

I’m going to buy to close the put credit spread and leave the 150/155 call spread open. My max potential loss in this trade is $300 per 1 contract, as planned. I will hold the remaining call spread as it does not expire until 18NOV.

Chart:

Risk Profile:

Order Ticket:

[IgorKeymaster]

WHR at 156.87

This trade initially didnt go as planned. We closed out the put credit spreads for a loss, leaving the call debit spread on.

Now, with 4 days to go, we can close out the call debit spread with a slight profit overall.

Risk Profile:

Order Ticket:

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