Bear Call Spread – RBLX
📉 Overextension tested, timing less ideal. Opened September 2
Roblox Corp (RBLX) has had a strong run, but price action remains choppy after the late-August peak. The stock opened this week below the prior week’s close — a sign of hesitation — yet quickly retraced higher during the session. That uptick triggered my limit order for a bear call spread at the 135 strike.
📉 Elevated but unsettled move. Entry at 10-delta level.
Setup Selection
The short call was placed at 135 — well above the current $126 level. While not confirmed by a textbook reversal pattern, the entry aligns with the system’s 10-delta rule. The trade does not require immediate downside; instead, it relies on time decay and the unlikelihood of RBLX staging another sharp breakout within days.
Implied volatility remains supportive, keeping premiums healthy. Still, the chart’s strong prior momentum leaves this setup riskier than usual.
Why Bear Call Spread?
→ Defined risk, capped exposure
→ Entry aligned with 10-delta system rule
→ Profits if price simply avoids a renewed surge
The trade’s edge comes from theta decay and the market’s tendency to consolidate after an extended run.
Trade Structure
Expiration: September 05, 2025
Short Call: 135
Long Call: 140
Contracts: 17
Credit Received: $0.26 per contract
Target Profit (net before fees): $442
👉 View on OptionStrat
👉 View in Trade Log
Entry and Exit Plan
The position was opened Tuesday, September 2, after RBLX briefly pushed higher intraday. With the short strike set near recent highs, the plan is to let theta do the work.
→ If price stalls below 135 and most of the premium is captured before Friday, I’ll look to exit early rather than hold to expiration.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.