Scribd Logo
Upload

Welcome to Scribd!

  • Vertical Bullish Call Spread Your Turn Worksheet Exercise

    Uploaded by

    monk trader
    11 views2 pages
    The document is a worksheet describing a vertical call debit spread strategy on AbbVie stock. It provides the trade details, including buying one June 90 call for $5.05 and selling one June 97.5 call for $2.29, for a net debit. It lists the key formulas for maximum loss, maximum gain, and breakeven point and prompts the user to calculate these values based on the trade details and current stock price of $89.78.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document is a worksheet describing a vertical call debit spread strategy on AbbVie stock. It provides the trade details, including buying one June 90 call for $5.05 and selling one June 97.5 call for $2.29, for a net debit. It lists the key formulas for maximum loss, maximum gain, and breakeven point and prompts the user to calculate these values based on the trade details and current stock price of $89.78.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views2 pages

    Vertical Bullish Call Spread Your Turn Worksheet Exercise

    Uploaded by

    monk trader
    The document is a worksheet describing a vertical call debit spread strategy on AbbVie stock. It provides the trade details, including buying one June 90 call for $5.05 and selling one June 97.5 call for $2.29, for a net debit. It lists the key formulas for maximum loss, maximum gain, and breakeven point and prompts the user to calculate these values based on the trade details and current stock price of $89.78.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Worksheet:

    Your Turn
    Section 3:Vertical Call Debit Spread (Bullish)

    AbbVie, Inc. (ABBV) has been a storied growth stock in


    the bull market of 2017. Currently the shares have pulled
    back and you believe the stock is undervalued. You want
    to wager that the stock will pop in the next couple of
    months, however you are still unsure of the stock as it is
    volatile and paying premium sets up for your risk
    tolerance. You decide to put on a bull vertical call spread.
    Bullish Spread

    Stock: ABBV

    Date: 4/6/18

    Stock Price: 89.78

    Buy 1 ABBV Jun 90 Call for 5.05

    Sell 1 ABBV JUN 97.5 Call for 2.29

    Fo r m u l a s

    Max Loss (Net Premium Spent) x 100

    Max Upside Profit (Call Spread Width - Premium Spent)


    Potential x 100

    Breakeven Lower Strike + Net Premium Spent


    Calculate the Formulas

    Max Loss

    Max Gain

    Breakeven

    ABBV Price
    at Expiry

    Net Result

    You might also like