ServiceNow Call Fly Hedge Cost

By Juri von Randow · 7 October 2026 · Free Lesson · 5 min

Two short upper calls pay for a ServiceNow call fly, then the December breakevens get checked on the chart.

Picking the window

In the clip I am weighing a long call fly on ServiceNow and build it on the chain. It looks like NOW might want the next leg higher, so maybe eighty days is enough. A hundred and seven days might feel a little slower.

Two short calls pay for it

To finance the spread I sell two of the upper calls, and now it is more than financed. Then I buy the hedge. The hedge is basically the only cost in this scenario. We have the bid and ask spreads of four options, but with liquidity around two thousand you get filled okay.

Moving to 130/150

On the chart 135 at the money maybe feels too weak and 140 is probably too bullish. 130/150 is probably the better structure, so I stick with 150 as the upper strike for now, and the downside breakeven sits a little further out.

Enough room in December?

With time passing, the breakeven goes down to 126 and up to 178 for December. A move to the upside is a luxury problem because this is a bullish trade. The problem is the downside, 119 can easily happen, and I ask myself whether there is enough room. If it sits at 150 you can squeeze it.

What the clip covers

• maybe eighty days, maybe a hundred and seven days
• in order to finance this, I'm just gonna sell two of those
• the hedge is basically the only cost in this scenario
• we have the bid and ask spreads of four options
• the break-even goes down to 125, let's say 126, and to the upside would be 178, and we're talking December
• a move to the upside is a luxury problem because this is a bullish trade

Every Wednesday we run a session like this on a real portfolio. One free lesson a week lands here; the full calls and the archive are part of the Elite Trader Program.

ServiceNow · Call Fly