The trade card provides you with the most relevant information in a compact, easy-to-read display. Circled in red, you will easily find how to put on this options trade for TZA. It shows you to buy the 25 call and sell the 30 call with the same expiration (08-Dec-2023). NOTE: This is a bull call spread, as indicated at the top of the trade card.

Market Price vs Theoretical Value

This section will let you do a quick comparison between the market price and theoretical value. As you can see, the market price is \$3.50 vs a theoretical price of \$3.79, implying a good buying opportunity.

To get the theoretical value, MarketChameleon.com analyzed historical stock behavior for TZA in similar circumstances and concluded that, given TZA historical stock price drift, the average end value of this spread would be \$3.79. Using historical statistics as your guidance, the current market is at a \$0.29 discount.

Theoretical Edge

Similar to a casino's statistical advantage over gamblers, trading is all about maximizing your edge. On this TZA trade you have a 8.2% edge, as displayed front and center in this section. After statistically calculating a \$0.29 theoretical edge, MarketChameleon.com converts it to a percentage of the amount at risk (\$3.50), so you can easily see the edge normalized.

In turn, this conformity will allow you to quickly and accurately compare various TZA trade cards. Think of it as running a casino and only taking bets from the gamblers you want. In technical terms, the theoretical percentage edge value tells you what the percentage discount/premium (to historical value) the current spread is priced.

Historical Win Rate

Here is the final piece of the puzzle for this TZA trade. You would like to know, if you did a similar trade in the past, how often did the stock do what it needed to in order for you to profit? This TZA call spread needs to increase by -3.6% or more in 13 trading days to be profitable (08-Dec-23 expiration).

Marketchameleon.com runs a historical analysis based on years of TZA stock returns to calculate how often the stock price achieved this (applying similar circumstances). And as you can see on the trade card, the data simulation shows you that 71% of the time the stock price reached the point where this bull call spread would result in a profit.

Don't Let an Opportunity Pass You By!

### How to Find More TZA Bull Call Spread Strategies

How you can find bull call spread trade ideas for other stocks

And if you want to find more bull call spreads for other stocks, go to the bull call spread screener

Videos you might like

How to Screen for the Best Bull Call Spread

Contact Information:

If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.