The bear call credit spread strategy gives a decent probability of profit, defined risk, and expresses a bearish opinion that the underlying will move lower.
The IVR on OIH reached above 70% and July 12 with a bearish opinion I sold the 25/26 call spread, 2 contracts @ 36 credit ea.
The $25.36 break even was quickly tested the following days, but eventually I closed a week early at 5c.
In hind sight I should have just closed the short option at 5c and let worthless long call expire to avoid the broker fee.
The IVR on OIH reached above 70% and July 12 with a bearish opinion I sold the 25/26 call spread, 2 contracts @ 36 credit ea.
The $25.36 break even was quickly tested the following days, but eventually I closed a week early at 5c.
In hind sight I should have just closed the short option at 5c and let worthless long call expire to avoid the broker fee.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.