If Shopify Stock Hits 55, This Option Trade Will Pay Off Big Time
अर्थव्यवस्था If Shopify Stock Hits 55, This Option Trade Will Pay Off Big Time 6 मिनट पहले बिटकॉइन एथेरियम समाचार Shopify (SHOP) put in a bullish candle Wednesday, rising over 5% and crossing back above the 50-day moving average. Shopify stock could be headed for a test of the early February high of 55. A cheap way to gain some upside exposure using options is via a bullish calendar spread. Volatility in SHOP stock is quite low at the moment, which is why I would favor a calendar spread over a credit spread. A calendar spread is a trade that involves selling a short-term option and buying a longer-term option with the same strike price. With Shopify stock trading around 47, a bullish calendar spread might be placed at 55. Selling the May 19, 55-strike call option will generate around $150 in premium. Buying the July 21, 55 call will cost around $300. Maximum Profit About $365 That results in a net cost for the trade of $150 per spread, and that is the most the trade can lose. The estimated maximum profit is around $365 but that could vary depending on changes in implied volatility. The idea with the trade is that if SHOP stock trades up to around 55, the calendar