Submitted by Positive-Trifle3854 t3_11dz46s in wallstreetbets
Mrchickenonabun t1_jabw57r wrote
I’m buying the 90/95 call spread for 400% possible gainz
Ill-Strength4570 t1_jackhao wrote
wouldn’t 95$ calls be worthless if the buyout price is 95$?
fulldouche t1_jae08pj wrote
If it's a call debit spread, that's exactly the point - buy the 90, sell the 95 - provides a capped loss if things go to hell while maximizing gains if it goes through since as you pointed out that 95 sold call will expire valueless
Mrchickenonabun t1_jae3ja3 wrote
Exactly, the 95c is really just to provide a discount in buying the 90c
AirportNo6558 t1_jaepjmz wrote
Are the calls pricing this already?
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