trend trading stock, stock trading

[Opening Bullish Spread on Fedex (FDX)] Dear Member: Fedex Corp (FDX) remains in an uptrend on both the weekly and daily charts. On the weekly, it just returned to a price support and bounced off both price support and trend support. The stock is currently trading a little over $108 a share. I am placing an order to open a bullish debit spread with a potential 61% return on risk. I am placing an order to simultaneously buy the Jan '08 100 calls (WFXAT) and sell the Jan '08 110 calls (WFXAB) at a debit limit of $6.20. If filled, this will mean a debit of $6.20 a share which is the total possible risk absent any future adjustments. If the stock is at or above $110 by Jan expiration, the spread will be worth $10 a share which would equal a profit of $3.80 a share on $6.20 of risk which would equal the 61% return on risk. The maximum risk would only occur if the stock were at or below $100 per share at expiration and I did nothing to adjust for a downward move. DISCLOSURE: At the time of publication, I have no postion in the referenced options or the underlying stock. Sincerely, Bill Kraft
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