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u/CALAND951 4 days ago Discussion

CLS BULL CALL SPREAD

I put on a CLS Jan. 21, 2028 $270/$400 bull call spread with the stock around $318. I paid $130 for the $270 call and sold the $400 call for $100, so my net cost and max loss are just $3,000. The spread is $130 wide, so if CLS is at or above $400 at expiration, it’s worth $13,000, giving me a $10,000 max profit on $3,000 at risk (333% return). Breakeven at expiration is $300. Obviously I’m giving up any upside above $400, but I like the risk/reward. Based on consensus 2028 earnings of $27 per share CLS would be trading at a forward PE multiple of roughly \~15x which compares with its 5-year NTM historical average of \~20x.
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  1. u/mrpuck 1 4 days ago
    Seems like a great way to save a heap on the cost of your 270.