Turning Core LULU Call position into a SPREAD
I made my Jan 2019 $100 long Calls from $3.91 a spread....by selling the Jan $120's for $3.20....
so now my max payout is $20 by selling the $120's (i capped my upside)....but i lowered my cost to $0.71....by selling them.
So i now have a capital outlay of $1,500 in the trade....and a max payout of $42,000 come next january.....if LULU closes above $120...
lazy river....