The stock managed to break above $28.50, which has been a big resistance for a while. Deming thinks there's more upside after the breakout and he wants to use options to make a bullish bet. He wants to buy the Aug. 28.50 call, sell the Aug. 29 call and sell the August 29.50 call for a total cost of 14 cents.
The trade breaks even at $28.64 and if the stock closes at $29 at the August expiration, it's going to reach its maximal profit of 36 cents. Above $29, the profit starts to trail off and it goes back to zero at $29.36. If the stock closes above $29.36 at the August expiration, the trade is going to lose money.
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