free option strategy

Cash Secured Put – Free Trade Idea

Every Friday we give you a free options trade idea identified by Option Party. Today, we’re focusing on the Cash Secured Put.

OPPORTUNITY

There is an attractive Cash Secured Put – Free Trade Idea in WHITING PETROLEUM (WLL). It is currently trading at $5.73.

CHARACTERISTICS

There is a 73.0% chance the stock will close above 5.00 on 07-14-2017, and you will earn your target return of $148.55. There is a 77.0% chance the stock will close above 4.85 on 07-14-2017, and you will earn a profit. There is a 0.1% chance the stock will close at or below 0.00 on 07-14-2017, and you will have a total loss of $4,851.45.

ENTRY PLAN

To enter this position you will sell 10 put options expiring on 07-14-2017 with a 5.00 strike price. This will produce a net credit of $0.16. The commission for this trade will be $11.45.

DISCLAIMER

All information presented here is current as of 06/16/2017 10:56 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 Cash Secured Put strategy that needed WLL to close above $5.00 on July 14, 2017 to earn the targeted return. WLL closed at $5.14 which resulted in a return of $148.55.