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.
There is an attractive bull put spread trade in POWERSHARES QQQ (QQQ). It is currently trading at $161.31.
There is a 94.5% chance the stock will close above 146.50 on 05-04-2018, and you will earn your target return of $146.95. There is a 94.5% chance the stock will close above 146.29 on 05-04-2018, and you will earn a profit. There is a 1.1% chance the stock will close below 140.00 on 05-04-2018, and you will have a total loss of $4,403.05.
To enter this position you will buy 7 put options expiring on 05-04-2018 with a 140.00 strike price and sell 7 put options expiring on 05-04-2018 with a 146.50 strike price. This will produce a net credit of $0.23. The commission for this trade will be $14.05.
All information presented here is current as of 4/13/2018 11:22 am EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.