My Free Options Trading Pick For Wednesday November 22, 2023 Is Live
Today I'm selling a cash secured put for an annualized return of 239.35%/10.94% raw return on $AI.
The Free Play of The Day is a Cash Secured Put on $AI
Trade Breakdown:
Strategy: Cash Secured Put/Wheel Strategy
Trade Cost: $276.00 Per Contract
Reward: $276.00 Per Contract
Risk: $2,524.00 Per Contract (Security)
Annualized/Raw Return: 239.35% / 10.94%
Probability Of Worthless: 47.13%
Breakeven: $25.24
Days to Expiry: 30
The full summary of this trade strategy including the strike price and how to enter the trade is described in detail below.
AI C3.ai Inc
Sell the Dec 22, 2023 $28.00 put option on AI to potentially acquire the stock with a 10.94% discount. You will collect $276.00 in premium per contract and have an obligation to purchase 100 shares of the stock at a net price of $25.24 if the stock closes below $28.00 and the put option is exercised by the buyer. This is a bullish strategy with limited risk of $2,524.00 and limited potential reward of $276.00. This strategy will profit if the stock closes above $25.24 by Dec 22, 2023. There is a 62.49% probability this will happen.
Entering the Trade:
Sell to Open 1 AI Dec 22, 2023 28 Put at $276.00
Bid: $2.72 Mid: $2.76 Ask: $2.79 Avg Premium: $2.76 DTE: 30
Please note that these prices are based on yesterday’s closing prices so if they change dramatically pre-market use your own discretion.
Trade Checklist:
Probability Of Worthless: The strategy you have selected to sell has a 47.13% chance of expiring worthless which is very low.
Annualized Return: The strategy you have selected to sell has a 239.35% annualized return which is very good.
Earnings Date: Be aware that there is an earnings call on Dec 6, 2023 which is prior to the expiration of your trade.
Spread & Liquidity: The bid/ask spread of this trade is low and there is good liquidity for these options, it is recommended that a limit order be placed near the bid/ask price.
This trade is part of the Wheel Strategy. If you have any questions about this trade, you can use the comments box. I read every one and I will answer personally. -Edward Corona
The Wheel Strategy
