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 inĀ DERMIRA INC. COMMON STOCKĀ (DERM). It is currently trading at $27.97.

CHARACTERISTICS

There is a 78.7% chance the stock will close above 17.50 on 02-16-2018, and you will earn your target return of $133.75. There is a 80.2% chance the stock will close above 16.83 on 02-16-2018, and you will earn a profit. There is a 1.7% chance the stock will close at or below 0.00 on 02-16-2018, and you will have a total loss of $3,366.25.

ENTRY PLAN

To enter this position you will sell 2 put options expiring on 02-16-2018 with a 17.50 strike price. This will produce a net credit of $0.70. The commission for this trade will be $6.25.

DISCLAIMER

All information presented here is current as of 2/2/2018 11:20 am EST. All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.