📢 My Wheel Strategy Trade for Monday, July 15, is Now Live! 📈
The new week brings fresh opportunity! Let's put the Wheel Strategy to work and generate some income.
Welcome back, fellow options enthusiasts! Let's kick off the week with a top high-yielding cash-secured put as a free play to get your engines revving!
Strategy: Cash Secured Put $SNAP
Consider selling the Aug 16, 2024, $16.00 put option on SNAP to potentially acquire the stock with a 10.96% discount. You will collect $158.00 in premium per contract and have an obligation to purchase 100 shares of the stock at a net price of $14.42 if the stock closes below $16.00 and the put option is exercised by the buyer.
This is a bullish strategy with limited risk of $1,442.00 and limited potential reward of $158.00. This strategy will profit if the stock closes above $14.42 by Aug 16, 2024. There is a 61.24% probability this will happen. This is a bullish strategy with limited risk of $1,442.00 and limited potential reward of $158.00.
Technical Summary SNAP: The stock has underperformed the market when compared to the S&P 500 over the last 50 trading days. Upside momentum, as measured by the 9-day RSI indicator is positive. The stock is trading above a rising 50-day moving average. This validates the strong technical condition for SNAP. The stock is above its 200-day moving average which is pointed up indicating that the intermediate-term trend is bullish.
🎯My Target Price: $20.56
Entering The Trade:
Bid: $1.56 Mid: $1.58 Ask: $1.59 Avg Premium: $1.58
Please note that these prices are based on market prices. Should the underlying move significantly during the pre-market hours, use your discretion.
$SNAP Snap Inc
Trade Checklist:
Probability of Worthless: The strategy you have selected to sell has a 45.63% chance of expiring worthless.
Annualized Return: The strategy you have selected to sell has a 227.38% annualized return which is very good.
Earnings Date: Be aware that there is an earnings call on Aug 1, 2024, 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.
*Disclaimer The examples in The Options Oracle are my opinion, not financial advice.
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