$Churchill Capital Corp IV
400% Opportunity option spread, *BUT ONLY FOR HIGH RISK individuals*, cause if the lucid deal doesn't go thru this will be max loss..
Call debit spread/long Vertical call:
You buy a 17.50 call & sell a 20.00 call, now if by expiration cciv is above 20.00 then both options get exercised automatically & u earn 2.50 per share, times 100=$250 but since u paid 50 for the spread your gain is 200, which is 400%
1. break even point (zero loss) is if the stock will trade at 18 by expiration
2. max gain will be if stock is 20 or above by expiration
3. gains are capped by a option spread, cause the 20 call u sell obligates u to give away the shares
4. u don't need to have buying power for the shares by exercise, cause they buy it & sell it instantly so the brokerage takes care of it
I personally did this trade, cause even though I have confidence the merger will occur, I don't believe this will be 90 in a month, but here if it's just 20 a share in a little over a month- Bingo! 400% return
Good luck & lmk in the comments if u plan on replicating this trade#Options Trading $TESLA $NIO Inc. $SPDR® S&P 500 ETF Trust $Apple $Li Auto Inc. $XPENG INC. $Lordstown Motors $UWM Holdings Corporation
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