- Underlying: SWKS
- View: Cautiously Optimistic (Short-term oversold rebound, targeting $70-$72 resistance).
- Strategy Type: Debit Spread / Directional Bullish
- Option Contract Portfolio:
- Buy 1 SWKS Jun 18, 2026 $67.50 Call @ $4.06
- Sell 1 SWKS Jun 18, 2026 $72.50 Call @ $2.00
- Max Gain & Loss: Max Gain = $294. Max Loss = $206.
- Initial Cost/Credit: Net Debit of $2.06 per spread.
- Greek Exposure (Simulated):
- Delta: +0.35 (Moderate positive directional exposure)
- Theta: -0.02 (Slight daily time decay, mitigated by short leg)
- Vega: +0.10 (Slight positive exposure to IV increase)
- Gamma: 0.05 (Moderate sensitivity to price changes near strikes)
- Rho: +0.01 (Minimal interest rate sensitivity)
- Rationale: This strategy aligns with the "cautiously optimistic" view and the technical target of $70-$72. It offers a defined risk/reward profile for a potential breakout above $69.03. The net debit structure is cost-effective compared to a long call, and selling the $72.50 call helps finance the position (positive Theta contribution) while capping upside at a logical resistance level. It provides a favorable balance: positive Delta for the anticipated move, reduced negative Theta impact, and minimal Vega exposure given the current elevated IV (49.14%).
- Time Frame: Short-term (to Jun 18, 2026 expiry).
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