Bearish options trade ideas for stocks like IBM, VZ, CRM, TSLA, JNJ, PATH, UBER, and CLF

From Nasdaq: 2024-05-29 08:38:59

A bear call spread involves selling a call option for credit and buying another for protection, best in a declining stock scenario. Trades are risk-defined and can be placed in retirement accounts. Traders should be bearish on a stock with high volatility. Barchart’s Bear Call Spread Screener shows potential trades on IBM, VZ, CRM, TSLA, JNJ, PATH, UBER, and CLF.

An example trade on IBM involves selling the $170 call and buying the $175 call for a potential profit of 73.01% with a breakeven price of $172.11. Another trade on CRM involves selling the $270 call and buying the $280 call for a potential profit of 72.41% with a breakeven price of $274.20. It is important to monitor risk, position sizing, and early assignment risk in these trades. Remember, options are risky and involve potential loss of investment.

This educational article by Gavin McMaster provides insight into bear call spreads and specific trade examples on IBM and CRM. All information provided is for informational purposes only, not a trade recommendation. Always conduct due diligence and consult a financial advisor before making investment decisions. The views expressed belong to the author and not Nasdaq, Inc.



Read more at Nasdaq: Bear Alert: Bearish Options Trade Ideas for May 29th