Bullish Tilt: CrowdStrike Option Strategy Geared for Upside Gains

CrowdStrike (CRWD) is holding nicely above rising 50 and 200-day moving averages and is a highly rated stock among many analysts.

Today, we are looking at an unbalanced iron condor, with a slightly bullish bias.

This can be achieved by trading more put spreads than call spreads.

As a reminder, an iron condor is a combination of a bull put spread and a bear call spread.

First, we take the bull put spreads. Using the September 18 expiry, we could sell two put spreads with the $185-$180 strike prices. That spread could be sold for around $0.70. Selling two contracts would generate $140.

Then the bear call spread, which could be placed by selling the $230 call and buying the $235 call. This spread could also be sold for around $0.55.

Trading two put spreads for every one call spread gives the trade a slight bullish bias, but also more risk on the downside.

In total, the iron condor will generate around $1.95 or $195 of premium.

The profit zone ranges between $183.05 and $231.95. This can be calculated by taking the short strikes and adding or subtracting the premium received.

The maximum risk is $805 on the put side and $305 on the call side.

If we take the premium ($195) divided by the maximum risk ($805), this iron condor trade has the potential to return 24%.

A stop loss in this case might be calculated based on 25% of capital at risk, so a loss of around $$200.

Below you can see the risk graph showing the profit and loss at expiration and also the T+0 line.

The Barchart Technical Opinion rating is a 88% Buy with a Weakening short term outlook on maintaining the current direction.

Long term indicators fully support a continuation of the trend.

Relative Strength just crossed below 50%. The market is indicating support for a bearish trend.

Of the 50 analysts covering CRWD stock, 33 have a Strong Buy rating, 3 have a Moderate Buy rating, 12 have a Hold rating and 2 have a Strong Sell rating.

CrowdStrike is an American cybersecurity company headquartered in Austin, Texas, best known for its cloud-native Falcon platform, which delivers endpoint protection, threat intelligence, and cyberattack response through a single lightweight software agent.