EXR bullish again
Updated
Last week, EXR held a very nice support at $90.00. For a day or two, I am expecting a minor retracement back to $93.00 and then back to $100. The relative strength indicator is back above 50 and is showing a gain in strength/momentum to the upside. I am experimenting with a vertical spread by buying the 95 call and selling the 100 call expiration in December. I am expecting about 3-5 weeks for the stock to get back to $100.00. I bought the call spread for 225$ and in 3-5 weeks when stock is back to $100 per share, this trade will profit between $70.00-$100. The rate of return is 31% minimum and 44.4%. If I hold this trade till expiration in December, my max profit would be 275.00 or 122.22%. As earnings come within 3 months, I most likely would take any profits right before earning as volatility will increase the price of the call options and I could sell them for a higher price.
Note
Got rid of the long option when stock reached near 90$ a share. This trade was negative -150$.
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