Quick Take: Low Cost Bullish Put Hedge Strategy
Time Frame: One to Twelve Weeks.
Stock: Bullish Market Edge Opinion – Long Stock Position.
Desired Stock Price Direction: Sideways to Up.
Option Position: Short ATM Put – Long ATM -1 Put (Bullish Put Credit Spread) and Long ATM deferred Put.
Desired Result: Stock stays flat or moves up in price.
Maximum Risk: The stock declines in value. The loss is offset by the amount of the credit spread and the appreciation in the deferred anchor put.
Summary: If the stock stays flat or moves up, the credit spread will expire worthless and you will keep the credit. However, the deferred put will decline in value in line with the long stock position price rise. If the long stock position moves down, the loss will be offset by the amount of the credit spread and the appreciation in the deferred anchor put.
This Week’s Low Cost Bullish Put Selections
There are no new selections this week:
Current Open Positions
| Stock PriceS Are Friday Afternoon | * After Symbol Denotes Short Stock Position | |||||||||
| Short Put | Long Put | Anchor | Anchor | Anchor | ||||||
| # Of | Stock | 06/14/19 | 06/14/19 | Credit | Put | Put | Put | Approx | Approx | |
| Stock | Weeks | Price | Strike | Strike | Spread | Exp. Date | Strike | Debit | Div Date | Dividend |
| PYPL | 8 | $116.45 | 117.0 | 115.0 | $0.83 | 07/19/19 | 105.0 | $2.10 | N/A | N/A |