Submitted by Positive-Trifle3854 t3_11dz46s in wallstreetbets
fulldouche t1_jae08pj wrote
Reply to comment by Ill-Strength4570 in Microsoft deal with Activision by Positive-Trifle3854
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
Viewing a single comment thread. View all comments