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Cree Inc. (NASDAQ: CREE) finds itself at the center of the “green” movement supported by the Obama administration. The President visited CREE and Vice President Biden noted the 375 jobs the company has added in the past year along with the $39 million in federal tax credits the company has received under a stimulus program for green energy manufacturers.
If you believe this trend will continue and CREE will remain strong, the Idea Generating Platform (IGP) located an in the money bull call spread that offers bullish flexibility.
CREE Debit Spread Trade Detail
CREE is currently trading at $69.81, down 2.3% this morning.
Debit Spread/Bull Call Spread -
Profit/Loss Details: Maximum risk: $3.50 (the debit paid at the time of the trade) plus commissions.
Maximum potential profit: $1.50 (the difference between strike prices -5 – minus the debit). Return on risk is roughly 43%.
Breakeven: $58.50 (the strike price of the purchased call plus the debit paid).
Like the looks of this spread trade but need or want a little more guidance? ONN.tv offers actively managed Trading Alerts each week for investors interesting in following our experts as they provide a premium service for subscribers.
Remember, trading Ideas are generated by the ONN Idea Generating Platform as a starting point for people to begin their own research. Trading ideas are not intended as trading or investment advice or recommendations that any particular security or strategy may be suitable for any specific person. You are solely responsible for your investment decisions, but we hope that some of these ideas will give you a starting point as you look for strategies to employ.
For more on CREE:
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