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 3D SYSTEMS (DDD). It is currently trading at $27.97.

CHARACTERISTICS

There is a 72.3% chance the stock will close above 10.50 on 04-06-2018, and you will earn your target return of $132.45. There is a 76.3% chance the stock will close above 10.17 on 04-06-2018, and you will earn a profit. There is a 0.0% chance the stock will close at or below 0.00 on 04-06-2018, and you will have a total loss of $4,067.55.

ENTRY PLAN

To enter this position you will sell 4 put options expiring on 04-06-2018 with a 10.50 strike price. This will produce a net credit of $0.35. The commission for this trade will be $7.55.

DISCLAIMER

All information presented here is current as of 3/9/2018 11:38 am EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.