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.
There is an attractive Cash Secured Put – Free Trade Idea in CHICAGO BRDGE & IRON (CBI). It is currently trading at $11.93.
There is a 74.9% chance the stock will close above 10.00 on 09-08-2017, and you will earn your target return of $166.80. There is a 78.4% chance the stock will close above 9.67 on 09-08-2017, and you will earn a profit. There is a 0.1% chance the stock will close at or below 0.00 on 09-08-2017, and you will have a total loss of $4,833.20.
To enter this position you will sell 5 put options expiring on 09-08-2017 with a 10.00 strike price. This will produce a net credit of $0.35. The commission for this trade will be $8.20.
All information presented here is current as of 08/11/2017 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.
How Did We Do? The Results…
This trade employed a Cash Secured Put strategy that needed CBI to close above $10 on September 8, 2017 to earn the targeted return. CBI closed at $14.14 which resulted in a return of $166.80.