| Hi Everyone! | ||||
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| STRIKE PRICE selection using a Cash Secured Put in a DOWN market | ||||
| For many people in a DOWN market, a Cash Secured Put (CSP) is the preferred option strategy when getting involved in a position. Many will not actually want to take ownership of the shares so they will want to select an OTM (Out of the Money) strike price where it's more favorable the investor will not be assigned the shares. We can do this by using the Expected Stock Move Calculator (ESMC) ... using a stock's current Implied Volatility (IV) for the expiration date being selected The ATM (At the Money) IV for an expiration date is a stock 'typical move' but is not guaranteed. Using the ESMC we can 'get a feel' for a stocks trading range and select a strike price at the bottom of the range to give us a good chance of not being assigned. The link below is where you can download your very own copy ... use it for your next CSP trade and see if it worked out. | ||||
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| As always, do your due diligence and this is not a recommendation | ||||
| Until next time, I wish you the very Best In Trading! | ||||
| ----------------------------------- | ||||
| Regards, | ||||
| John | ||||
| email me corepositiontrading@gmail.com | ||||
| Remember, this is not financial advice, this content is for informational, entertainment and educational purposes only. This is not financial advice. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. | ||||
| Disclaimer - Yes - at the time of this posting I do own shares. I am by no means recommending this stock for purchase or using its options in a trade for you | ||||
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