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1 7 . IfAkashinsteadbecamelonger - termbullishonONON,andNOWchosetobuytheJanuary 2 0 2 6 4 0 CALLfor $ 1 1 . 4 5 and sell the Jan 2 0
IfAkashinsteadbecamelongertermbullishonONON,andNOWchosetobuytheJanuaryCALLfor $ and sell the Jan CALL for $ And then, assuming that the January CALL expired worthless, Akash sells an April outofthemoney CALL at that point...awhat is this option strategy called?b Why would Akash choose this trade instead of a standard VERTICAL BULLISH DEBIT CALL SPREAD?c Contrary to the assumption above, If ONON instead closed at at the January expiration, what is the profit AKASH would make on this trade, assuming that the Jan CALL still has $ of Time Value?d Again, if ONON closed at at the January expiration and the Jan CALL still has $ of Time Value, what is Akashs ROI on this trade?
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