Google has made a nice run to the upside in the past couple of weeks but it seems to have reached a point of resistance. The quick run higher has also drawn the stock a good distance away from the 20-day moving average, which is why we are selling the near term call spread. If the stock closes below 865 on expiration day, which is two weeks from today, we will be able to maximize our profits. The max profit for this spread is the amount of money we collect, which is $3.70. This would work out to be a 12.3% profit in 14 days. It’s important to know that there is upside risk to this position. The good news is that it is limited risk.
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