Small risk for big gain

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ANF is reporting earning Tuesday morning. Consider opening at debit calendar spread to take advantage of theta decay. Sell $175 November 29 call, and buy $175 December 6 call for debit price of $90. Max profit of over $900 if held to expiration but DO NOT do that due to risk of assignment. Close the trade for a nice profit of $100-$200.

Even if price fall to $135. Risk is only losing $41 of the price paid.

Good luck.

Learn more about debit put or debit call calendar spread for earning trade.

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