What's not to like about a play that will get you more than 1.00 credit ($100)/contract at a strike $11 below current price?
Here are the metrics:
VRX May 20th 15 short put
Probability of Profit: 74%
Max Profit: $1.37 ($137)/contract
Buying Power Effect/Max Risk: ~$150/$1363 (assuming you do nothing, get assigned the shares at $15/share, and the stock goes to "0" without your selling calls against).
Notes: In this particular case, I'm fine with taking assignment of the stock at $15/share if it comes to that, but will look to exit the trade at 50% max profit.
Here are the metrics:
VRX May 20th 15 short put
Probability of Profit: 74%
Max Profit: $1.37 ($137)/contract
Buying Power Effect/Max Risk: ~$150/$1363 (assuming you do nothing, get assigned the shares at $15/share, and the stock goes to "0" without your selling calls against).
Notes: In this particular case, I'm fine with taking assignment of the stock at $15/share if it comes to that, but will look to exit the trade at 50% max profit.
