I would like to make a suggestion on a debit spread and the stock is Zendesk, Inc. (ZEN).
ZEN is trading around $88.15 as I write this.
My suggestion is to trade the August monthly options that expire on August 21st.
This gives the stock about two weeks to make a move.
Here is how you open the position:
Buy to Open August 21st - $87.50 Call for $6.10
Sell to Open August 21st - $92.50 Call for $4.00
The net debit will be $2.10 per spread.
Based on the tracking portfolio, I suggest you limit the trade to a 6 lot or 1.2% of the portfolio.
The maximum gain on a six lot would be $1,450.
