This SOXL Debit Call Spread Targets 77% Return in 7 Days
Bullish play with a target stock price of $38 or above
Strategy has +77% upside potential and 5% undervalued
Option Profit Calculator for SOXL Call Spread at 23-Feb-24 Expiration
If SOXL stock price at expiration is at or above $38.00, this spread has a 77% upside potential
The optimal stock price for this option strategy is to close at or above $38.00 on the expiration date, February 23, 2024. In that scenario, both calls would be in-the-money, so the spread would be worth the maximum value of 4.00. That would equate to the potential upside of +77% for this call spread with 7 days left to expiration.
The maximum gain will be realized if the stock price is at or above 38.00. The maximum gain is $1.74
The breakeven point is at 36.26, which is 2.2% below the current spot price.
The maximum loss will occur when the stock price is at or below 34. The max loss is $2.26.
SOXL Spread Current Market Price vs. Historical Average
SOXL Call Spread is trading at a 5% discount to historical average.
Using historical data to measure how a similar spread in SOXL was priced in the market, the 4-year average value was 2.39, with a high mark of 2.84 and a low of 2.21.
Currently, this vertical call spread is bid at 2.11 and offered at 2.26. The midpoint of the spread is 2.19.
If we use 2.39 as our historical fair value benchmark, the current market ask price is at a 5% discount, while the current market midpoint represents a 8% discount.
|Historical Values of Similar Spreads
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