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 SNAP INC (SNAP). It is currently trading at $13.10.

CHARACTERISTICS

There is a 75.4% chance the stock will close above 11.00 on 08-10-2018, and you will earn your target return of $128.45. There is a 78.5% chance the stock will close above 10.68 on 08-10-2018, and you will earn a profit. There is a 0.0% chance the stock will close at or below 0.00 on 08-10-2018, and you will have a total loss of $4,271.55.

ENTRY PLAN

To enter this position you will sell 4 put options expiring on 08-10-2018 with a 11.00 strike price. This will produce a net credit of $0.34. The commission for this trade will be $7.55.

DISCLAIMER

All information presented here is current as of 7/16/2018 1:51 am EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.