THis is a fairly aggressive set up with two weeks to run left on OCT options.
I see some recover from these over-sold levels, so I sold an at the money put at 2.71 strike with protection out of money below. It's aggressive because the possible loss if much greater than the win ( premium). But I figure this is compensated for by a lower probability of being on the wrong side.
SOld 100 contracts ( 10000 shares) European Put option strike 2.71 OCT 15th......0.10 c
bought American put 2.40 0.02 c net profit 0.80 ( $800)
I see some recover from these over-sold levels, so I sold an at the money put at 2.71 strike with protection out of money below. It's aggressive because the possible loss if much greater than the win ( premium). But I figure this is compensated for by a lower probability of being on the wrong side.
SOld 100 contracts ( 10000 shares) European Put option strike 2.71 OCT 15th......0.10 c
bought American put 2.40 0.02 c net profit 0.80 ( $800)
Trade closed: target reached
