Buy a call spread with time frame appropriate to your view. To
partially finance your call spread, you could consider shorting
puts with less than one week to expiry, at a strike you dont
believe will be hit - hard to do considering potential downside
volatility from debt ceiling, or other factors.
as a follow up to purchasing the call spread, if you think the
measured move is all that there will be, you could also consider
buying a butterfly, where the short call strikes are at the
measured move. this would be cheaper than buying a call
spread, but also provides less upside.
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Buy a call spread with
XLY options question
Posted by te22 on 9th of May 2023 at 11:16 am
Buy a call spread with time frame appropriate to your view. To partially finance your call spread, you could consider shorting puts with less than one week to expiry, at a strike you dont believe will be hit - hard to do considering potential downside volatility from debt ceiling, or other factors.
thanks
Posted by matt on 9th of May 2023 at 11:17 am
thanks
as a follow up to
Posted by te22 on 9th of May 2023 at 01:36 pm
as a follow up to purchasing the call spread, if you think the measured move is all that there will be, you could also consider buying a butterfly, where the short call strikes are at the measured move. this would be cheaper than buying a call spread, but also provides less upside.