[Calendar Spread/Buy CQRLD/Sell CQRHD/debit $1.20]
Dear Member,
I am placing an order to enter a calendar spread on CREE. I am buying the Dec 20 calls (CQRLD) $2.65 x $2.75 and selling the Aug 20 calls (CQRHD)$1.55x $1.60 for a net debit of $1.20. The implied volatility (IV) is in the 5th percentile and an increase in implied volatility would help the trade. With no change in IV, the breakevens are $18.26 and $22.37 without accounting for commissions. The stock is near a level of support.
DISCLOSURE: At the time of publication, I have no position in the referenced options or in the underlying stock.
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