Relative Strength Soars On Medtronic Stock. Here’s How To Get Bullish

Medtronic (MDT) stock jumped 2% on Monday as it hit a 52-week high and showed signs of strong accumulation.

Medtronic stock recently received an RS Rating upgrade from 67 to 82 making it a great stock to consider for bullish options trading.

Investors interested in taking some bullish exposure can do so with much lower risk through a bullish call spread.

Preferred debt spreads with low implied volatility

A bull call spread involves buying one call and then selling another out-of-the-money call. Selling more out-of-the-money calls reduces the cost of the trade but also limits the upside. The implied volatility of Medtronic stock is very low which is favorable for put spreads, such as the bull call spread and the bear spread.

The March 20 105 strike call option was trading at about $5.25 this morning, and the March 20 115 call was trading at about $1.60.

Buying the 105 call and selling the 115 call creates a bullish call spread. The cost of the trade will be $365 (the difference in option prices, multiplied by 100), and the maximum potential profit will be $635 (the difference in strike prices, multiplied by 100 less the premium paid).

The bull call spread is a risk defined strategy. If Medtronic stock closes below 105 on March 20, the most the trade can lose is the premium paid of approximately $365.

The potential gains are also set to be above 115, so no matter how high Medtronic stock goes, the maximum you can earn on the trade is $635.

Trade management

The break-even price of the trade equals the long call strike plus the premium. In this case it equals 108.65.

In terms of trade management, if the stock drops below $95, or if the spread drops from $365 to $185, I would consider closing early for a loss.

The 95 level coincides with the current level of the 50-day moving average.

Reducing losses by 50% of the premium paid helps preserve capital for future opportunities while preventing small losses from becoming large losses.

Review valuations for Medtronic stock

Investor’s Business Daily gives Medtronic stock a… Composite evaluation Of 84 of the best 99 possible, and Earnings per share rating From 56 and a Relative strength rating Of 83. According to IBD inventory checkMedtronic ranks first in the medical products group.

Medtronic is a global healthcare technology company headquartered in Ireland and originally founded in 1949 in Minneapolis.

It develops medical devices and therapies that treat more than 30 chronic conditions, including heart disease, diabetes, neurological disorders and spinal problems.

In fiscal year 2025, Medtronic reported revenue of approximately $33.5 billion and continues to expand patient access, serving more than 79 million people worldwide while advancing sustainability and innovation goals.

Please remember that options are risky, and that investors can lose 100% of their investment.

Gavin McMaster is the founder and operator of Options Trading IQ, which provides instruction on how to buy and sell options. Follow him on X/Twitter at @OptiontradinIQ.

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