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 NETFLIX (NFLX). It is currently trading at $329.12.

CHARACTERISTICS

There is a 96.2% chance the stock will close above 260.00 on 11-16-2018, and you will earn your target return of $154.45. There is a 96.3% chance the stock will close above 259.23 on 11-16-2018, and you will earn a profit. There is a 0.8% chance the stock will close below 235.00 on 11-16-2018, and you will have a total loss of $4,845.55.

ENTRY PLAN

To enter this position you will buy 2 put options expiring on 11-16-2018 with a 235.00 strike price and sell 2 put options expiring on 11-16-2018 with a 260.00 strike price. This will produce a net credit of $0.81. The commission for this trade will be $7.55.

DISCLAIMER

All information presented here is current as of 10/22/2018 2:07 pm EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.