BAC spread, risk/reward?

T

traderlux

any comments on the following BAC spread?
(i know nothing about this, just re-posting for some one who had a question about the risk/reward)

short 1 may $11 call

long 3 jul $13 call

looks like a db of $.20 with BAC about $12.50
 
spread is too fancy,
the holy grail is to get the direction correct and only BUY calls or puts.
u can sleep sound then.

Quote from traderlux:

any comments on the following BAC spread?
(i know nothing about this, just re-posting for some one who had a question about the risk/reward)

short 1 may $11 call

long 3 jul $13 call

looks like a db of $.20 with BAC about $12.50
More...
 
the 11 call is in the money if stock price is currently 12.50. you will be assigned and you will have to buy the shares at the $11 price.
 
Quote from sbc:

the 11 call is in the money if stock price is currently 12.50. you will be assigned and you will have to buy the shares at the $11 price.
More...
You might want to rethink that one :)
 
...made a mistake when i posted this, the trade was done with a cr not a db...


Quote from traderlux:

any comments on the following BAC spread?
(i know nothing about this, just re-posting for some one who had a question about the risk/reward)

short 1 may $11 call

long 3 jul $13 call

looks like a db of $.20 with BAC about $12.50
More...
 
Another question. What about using this strategy on Vix? I mean buy 3 sept. calls and sell 1 June. It is impossible to be assigned with Vix. Loss is only between 2 BE. Is there any possible problem I do not see? Backtest on TOS works well but as often, live trading is different.

Thanks very much.
 
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