- Underlying: AT&T (T)
- View: Cautiously bullish, expecting moderate upside to the $22.0-$22.5 resistance zone, but acknowledging the high IV environment and potential for consolidation.
- Strategy Type: Debit Spread / Vega-Neutral to Positive / Theta-Negative
- Option Contract Portfolio:
- Buy 1x T Jul 24, 2026 $21.0 Call @ $1.00 (mid)
- Sell 2x T Jul 24, 2026 $22.0 Call @ $0.43 (mid) each
- Max Gain & Loss:
- Max Gain: $0.14 per spread (achieved if stock closes at $22.0 at expiration). Unlimited profit potential above $22.0 is limited by the extra short call.
- Max Loss: Limited to the net debit. Loss increases if the stock rallies significantly above the upper strike ($22.0).
- Initial Cost/Credit: Net Debit of $0.14 per spread (Buy 1 @ $1.00 - Sell 2 @ $0.86).
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