cash-secured put sale Archives - CBOE Blogs

  • Trader Talk | Strategy | Trade Ideas | Mar 27, 2015, 10:40 AM

    How to Buy TSLA Almost 8% Lower than Current Price

    How to Buy TSLA Almost 8% Lower than Current Price

    With TSLA currently around $190, how can I buy the stock anywhere near $175? The answer could be the sale of a cash secured put. With the stock at $191 the April 180 put is trading at around $3.00.  I will sell 1 April 180 put at $3.  If the stock finishes under the strike price of 180 at April Expiration (April 17th), I would be obligated to buy the stock at $177 ( strike price minus the premium received).  If the stock doesn’t fall below $180 at April Expiration, I collect[...]