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Showing posts with label WMT Feb 5 2021 135/129 put spread. Show all posts
Showing posts with label WMT Feb 5 2021 135/129 put spread. Show all posts

Thursday, February 4, 2021

Options trade: Bullish put trade on Walmart | credit put spread

 Tue. 12/29/2020

sell (to open) -2 Feb 5, 2021  $135 puts at $1.15 (prob ITM: 20.53%)

buy (to open) +2 Feb 5, 2021  $129 puts at $0.51 (prob ITM: 10.23%)

  • Net credit: $0.64 x 2 x 100 = $128
  • Max profit:  $128
  • Margin: $873
  • "oversold"
  • 37 DTE


Thu. 2/4/2021

buy back just one of the short puts at $0.01

let the other short put and the two long puts expire "worthless"

NET PROFIT:  $124.33 (ROC: 14% in 37 days)

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