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Roger’s windfall strategy for the “BUY signal of the decade”

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Today's Best Idea
 
The Greatest Potential Buy Signal We’ll See This Decade

The train’s leaving the station ...

Get Roger’s picks NOW for the  #1 sector and #1 stock to play the coming monster move.

If you hurry, you can still get on for the ride.

Watch the urgent briefing while you can!

 
Roger's Daily Video
 

Profits That Could Literally Make Your Year

 
 

My inbox is flooded. There’s one thing on everyone’s minds: The Mother of All Pullbacks. In today’s video, I’ll answer your top three “MOAP” questions as we prepare for this major market event. This is your final opportunity — don’t miss it!

 
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Market Update
 
Conflicting Reports on U.S. China Trade Talks and Nervousness Ahead
 
 

Wednesday, January 23, 2019

U.S. markets showed strength on Wednesday’s open but backed off the early morning highs shortly afterwards while struggling for direction. Conflicting reports on U.S./ China trade talks and nervousness ahead of...

 
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Roger's Toolbox
 

Bull Call Debit Spread Explained

by Roger Scott
 

A bull call spread is a vertical spread that relies on two calls with the different strike prices and same expiration date.

The strike price of the short call is higher than the strike price of the long call, which means this strategy is a debit spread, but the short call option can be utilized to offset some of the cost for the more expensive call that was purchased.

How can you use this in your own trading — today?

 
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Definitions
 

Call Options are an agreement that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price. 

A Debit Spread is an option strategy involving the simultaneous buying and selling of options with different prices requiring a net outflow of cash. Here, the sum of all options sold is lower than the sum of all options purchased, therefore the trader must put up money to begin the trade. You’ll have to pay your brokerage firm the difference between the two premiums when you open the transaction. In most cases, the goal of a debit spread is to have the stock move beyond the strike price of the short option so that you realize the maximum value of the spread.

A Vertical Spread options strategy involves the purchase of the same type of put or call option on the same underlying asset, with the same expiration date but with different strike prices. The term "vertical" comes from the position of the strike prices. In contrasts to a calendar spread, which is the simultaneous purchase and sale of the same option type with the same strike but different expiration dates.

 
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