free option strategy

Bull Put Spread – Free Trade Idea

Every Friday we give you a free options trade idea identified by Option Party. Today, we’re focusing on the bull put spread screener.

OPPORTUNITY

There is an attractive bull put spread trade in UNITED CONTINENTAL (UAL). It is currently trading at $58.76.

CHARACTERISTICS

There is a 92.7% chance the stock will close above 51.00 on 10-20-2017, and you will earn your target return of $324.85. There is a 93.0% chance the stock will close above 50.90 on 10-20-2017, and you will earn a profit. There is a 2.2% chance the stock will close below 48.00 on 10-20-2017, and you will have a total loss of $9,875.15.

ENTRY PLAN

To enter this position you will buy 34 put options expiring on 10-20-2017 with a 48.00 strike price and sell 34 put options expiring on 10-20-2017 with a 51.00 strike price. This will produce a net credit of $0.11. The commission for this trade will be $49.15.

DISCLAIMER

All information presented here is current as of 09/22/2017 11:27 am EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.


How Did We Do? The Results…

This trade employed a Bull Put Spread strategy that needed UAL to close above $51.00 on October 20, 2017 to earn the targeted return. UAL closed at $59.90 which resulted in a return of $324.85.