Today, I would like to make a suggestion on a stock that we traded a few weeks ago.
And that stock is AMN Healthcare Services, Inc. (AMN).
It appears like it is setting up for another run.
I am going to suggest a debit spread and I will suggest you use the July monthly options.
Here is the trade:
Buy to Open July 17th - $45.00 call @ $3.30
Sell to Open July 17th - $50.00 call @ $1.55
The net debit will be $1.75 per spread, with a maximum gain of $3.25 per spread.
The maximum return on the position would be 186% or just under a 2 to 1 return.
Based on the nominal portfolio, limit the trade to 6 spreads or about 1% of the portfolio.