Bull call spread.

I like the chart for Hostess (TWNK). I am a little concerned labor might strike, emboldened by what happened at Nabisco but I’m only taking a chance on about 5,000 dollars.  With shares trading at 18.72, I bought the 15/17.5 bull call spread with 19NOV2021 expiry for 2.15 a share (24 spreads).  I put 5,160 in capital at risk over 40 days. 

The spread enjoys an impressive 8.39% downside protection to breakeven.  Unfortunately, being that deep in the money hurts profitability.  Should the spread finish in the money, the full profit will be 840 dollars, which is good for 16.3% or 149% annualized.

With five days left in my October expiries, three out of four spreads are threatened.  LSI is hopeless and will be a total loss. I’m holding out on Amazon and ST Micro.  This will probably be a losing month.