Bull spread in Invitation Homes.
music selection: “He Carves His Stone” — Savatage
weigh-in: 207.2 (0.2)
I’m making another at the money bullish bet. This time on Invitation Homes (INVH). INVH is a residential rental REIT that is in a strong uptrend. With housing inventory near all time lows, they have strong tailwinds. Shares closed at 36.56 today. I bought the 35/37.5 bull call spread (41 spreads) for 1.19 per share. This gives me 1.01% downside protection in the trade, which will be in force for 46 days (July expiry). If today were expiry day, the spread would turn a profit of 1,516 on 4,880 in capital at risk. Should shares rise 2.57% by expiry, the spread will be worth 5,370 in profit. That is 110% or 873% annualized.
Devour your prey raptors!