A structured, defined-risk options play targeting a specific upward move in ARM Holdings. Currently trading at $176.30.
If you are bullish on a stock, you could just buy a standard Call option. But Calls can be expensive! A Bull Call Spread (also known as a Call Debit Spread) lowers your cost. You buy a Call close to the current price, and simultaneously sell a Call further up.
The Trade-off: The Call you sold pays you cash, which makes the whole trade cheaper. But in exchange, it acts as a "ceiling"—capping your maximum potential profit if the stock rockets past it.
You paid $13.70 ($1,370) for the right to buy ARM at $180.
Current Price: $13.20 (P/L: -$50.00)
You collected $9.94 ($994) obligating you to sell ARM at $190.
Current Price: $10.70 (P/L: -$76.00)
May 29, 2026 (38 DTE)
ARM > $183.76
ARM is a primary beneficiary of the massive buildout in AI data centers and edge computing.
Positioning ahead of expected strong guidance and numbers.
Since you are already long SMH (Semiconductor ETF), this acts as a high-conviction, high-correlation alpha bet on a specific winner within that sector.
Unrealized P/L
-$126.00
Net Market Value
$250.00
Prob. ITM
51.2%
Distance to B/E
4.23%
The absolute most you can lose is the net premium you paid to open the trade: $376 ($13.70 paid - $9.94 collected). This happens if ARM stays below $180 by May 29.
Your maximum profit is the distance between the strikes ($1,000) minus the premium you paid ($376) = $624. You achieve max profit if ARM closes above $190.