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 ABERCROMBIE & FITCH (ANF). It is currently trading at $27.45.

CHARACTERISTICS

There is a 68.0% chance the stock will close above 25.00 on 09-07-2018, and you will earn your target return of $161.75. There is a 73.3% chance the stock will close above 24.19 on 09-07-2018, and you will earn a profit. There is a 0.0% chance the stock will close at or below 0.00 on 09-07-2018, and you will have a total loss of $4,838.25.

ENTRY PLAN

To enter this position you will sell 2 put options expiring on 09-07-2018 with a 25.00 strike price. This will produce a net credit of $0.84. The commission for this trade will be $6.25.

DISCLAIMER

All information presented here is current as of 8/17/2018 11:23 am EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.