Let us say I bought a 12 - 13 call spread on BB. At the time of the trade, BB was ~ 12.50. So I buy the 12 call and sell the 13 call, both to expire on Jun 19. Over the life of the option, the stock zigs and zags between 12 and 13...going as low as 12.10 and as high as 12.90 and settles at 12.30 on expiry. I barely break even. What are some ways to improve this trade? Should I just try to scalp stock, trying to pick tops and bottoms to offset the cost of the spread? Scalping is tricky because it involves trying to time the market, which is risky. Are there other ways to reduce the cost of the trade and trying to improve the risk/reward profile?
Perhaps take a look at the "Costless Collar" spread . It may give you the profile you are looking for.
Strangle or iron condor if you think the tight range will continue and the premium is worth the risk.