I discussed Lowes Stock (LOW) in the morning Investing Strategy Notes today. The stock moved higher though which meant I had to move the trade up to the $255 put strike for next week’s expiry. I couldn’t however come close to the plan of earning $1.00 for selling the put.
Lowes Stock (LOW)
TRADE SUMMARY: Credit Put Spread
Date: Tue Sep 24 2024
Equity: Lowes Stock (LOW)
Approx Price At Entry: $269.00
Expiry: Oct 4 2024
Next Earnings: November 19 2024
Potential Profit: $280.00
Potential Return: 1.4%
Approx. Percent of Protection: 5.2%
TRADE DETAILS:
Short Puts: Sold 5 put contracts for Oct 4 2024 expiry at the $255.00 put strike for an average of $0.61 = $305.00
Long Puts: Bought 5 put contracts for Oct 4 2024 expiry at the $215.00 put strike for $0.05 = ($25.00)
Spread Details: This forms a $40.00 credit put spread returning 1.4% earning $280.00 if held to expiry on Oct 4 2024
Buy To Close Early Offer: I am offering $0.25 to start and will reduce that amount as the trade moves toward expiry on Oct 4 2024
TRADE STATS:
Put Strike Sold: $255.00
Potential Profit: $280.00
Potential Return: 1.4%
Credit Put Spread Size $40.00
Approx. Percent Of Protection: 5.2%
Equity Would Have To Fall To Reach Short Put: $14.00
Capital In Use: $20,000.00
Disclaimer: No commissions are taken into account in these trades. Remember do your own due diligence. I am not a financial planner or advisor and have no financial accreditations. Nothing you read are recommendations. FullyInformed.com is for educational and entertainment purposes only.
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