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[bratby]

$BABA Earnings Options Play

I am bullish on $BABA using the Dynamic Trend Indicator with a price target slightly above 125. Therefore, I can develop a trade that will take advantage of my expected move with limited capital requirements. The May monthly expiration 123 calls are trading at 1.55 I want to buy these calls and sell the May 125 calls at 1.00 resulting in a May 123-125 bull call debit spread. The price is .55 debit my max loss and my max profit is 2 wide spread minus .55 debit = 1.45 that’s nearly a 3 to 1 return on my capital if BABA closes at or above 125 by May expiration!

Get the Charts and Full Options Trade Setup for $BABA ahead of Earnings HERE >>>>