Options Trading Strategy for June Expiration

An options trading strategy for June expiration is discussed, involving the purchase of a June 185 call and the sale to open of a June 220 call spread with a $9 premium. The maximum risk of the trade is 5%, with potential profits up to $26 between 194 and 220. The trader's losses are capped at $9 between 194 and 185, with a maximum loss at 185 or lower. Stop-loss levels are set to manage risk, ensuring a maximum loss of 5%. The trade offers a three-to-one payout or about 15% of the stock price and leverages an extra month compared to other strategies, allowing potential gains even in a 20% stock price movement by June expiration.