Trade idea
Trade idea put spread
For a trader who has already engaged in a 'poor man's covered call' strategy, the next logical step is to consider selling a put spread slightly below the market. This strategy offers a similar risk profile while providing a defined risk and reward structure. It is suitable for traders who believe the stock will move upward but want to limit downside risk. The put spread allows for capturing premium while maintaining a directional bias.
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Strategyput spread
Assetoptions
Time horizonshort-term
Entry / triggerif the trader believes the stock will move upward
Invalidation / stopif the stock moves significantly against the position
SpeakerScott
Risks- limited upside potential
- risk of assignment if the stock moves significantly against the position
Trade idea
COINBASE put spread
The trade involves selling an August put spread in Coinbase, with strikes at 120 and 100, collecting a premium of $2. The trade is based on the expectation that Coinbase will remain below its year-to-date low of 145. The probability of profit is estimated at 90%, with the expected move being 32 points. The trade is considered favorable due to the risk-reward ratio and the inverse relationship between the strike width and the probability of profit.
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Strategyput spread
Assetequity
ExpirationAugust
Time horizonshort-term
Entry / triggerCoinbase is trading below its year-to-date low
Target / exitprofit from the premium collected
Invalidation / stopif Coinbase moves significantly higher
SpeakerTom
Structure / legs- put spread with strikes at 120 and 100
- premium collected: $2
Risks- Significant price movement in Coinbase could result in losses.
- Volatility could affect the expected move and probability of profit.
Trade idea
CRUDE OIL put spread
The speaker discusses the impact of high volatility on options strategies, particularly for those who are short a put spread. The speaker explains that in a high volatility environment, the market may not move much in the short term, making it difficult for strategies that rely on directional movement. The speaker suggests that the market is pricing in the expectation of significant movement, which can delay actual price changes. This indicates that the speaker is cautioning traders about the risks of shorting options in a high volatility environment, as the market may not move as expected.
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Strategyput spread
Assetcommodity
ExpirationApril
Time horizonshort-term
Entry / triggerhigh volatility environment
Target / exitno specific target mentioned
Invalidation / stopmarket movement or volatility decrease
SpeakerTom
Risks- market movement
- volatility decrease
- time decay
Trade idea
SPACEX put spread
Selling the August 21st 8100 put spread in SpaceX offers a high probability of profit due to the stock's expected move and elevated implied volatility. The trade has a 96% probability of profit and an annualized return of 30% plus. The strategy is effective when the stock is near its expected move range and the implied volatility is high. The trade is a defined risk with a high reward-to-risk ratio.
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Strategyput spread
Assetequity
ExpirationAugust 21st
Time horizonShort-term (within the expiration date)
Entry / triggerStock is near the expected move range
Target / exitProfit from the premium collected
Invalidation / stopLoss of the premium if the stock moves against the trade
SpeakerSpeaker
Risks- Risk of losing the premium if the stock moves against the trade
- High margin requirements for naked puts
Trade idea
Nike put spread
profit from downside risk if stock remains below strike price
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Strategyput spread
Assetstock
ExpirationSeptember
Time horizonshort-term
Entry / triggerstock at multi-year low
Target / exitsell at a dollar
Invalidation / stopstock price movement
SpeakerVinnie
Risks- stock price rises
- volatility changes
Trade idea
S&P put spread
The speaker suggests selling a put spread with a $10 or $15 wide range to hedge against potential downturns in the S&P. The idea is to manage risk by limiting the downside while allowing for potential upside. The strategy is to get back to even and then start with a new position, indicating a short-term approach with a focus on risk management.
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Strategyput spread
Assetindex
Time horizonshort-term
Entry / triggermarket reversal
Target / exitreaching even
Invalidation / stopmarket reversal
SpeakerUnknown
Risks- Market reversal
- Limited capital
- Spread costs
Trade idea
SPX put spread
The probability of a 20% meltdown in the SPX by December 2026 is 30%, based on the delta of the 5600 put. A short put spread strategy can be used to capitalize on this probability, with a focus on higher probability trades (e.g., 65-75% chance) to reduce risk. This approach allows for a more realistic and strategic position, balancing potential gains with the risk of market movements.
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Strategyput spread
Assetindex
Expiration2026-12-31
Time horizon2026
Entry / triggerMarket reaches 5600
Target / exit30% probability of reaching 5600
Invalidation / stopMarket does not reach 5600
SpeakerDavid
Structure / legs- 5600 put
- far out of the money put
Risks- Market volatility
- Incorrect probability assumptions
- Liquidity issues in options trading
Trade idea
NFLX Put Spread
The speaker is short a put spread on Netflix, selling the August 70 put for $3.55, expecting the stock to remain below this strike. The strategy is based on the belief that Netflix is in a downtrend following earnings reports, and the put spread allows for profit from the premium while limiting risk. The speaker also mentions a call diagonal spread, indicating a broader strategy of using options to capitalize on market movements.
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StrategyPut Spread
AssetEquity
ExpirationAugust
Time horizonUntil expiration
Entry / triggerStock is trading below the short put strike
Target / exitProfit from the premium received
Invalidation / stopIf the stock rises above the short put strike
SpeakerTom
Structure / legs- Put at 70 strike
- Put at 75 strike
Risks- If the stock rises above the short put strike
- Market volatility could impact the trade
Trade idea
ES Put Spread
In a high volatility environment, shorting put spreads on the ES (E-mini S&P 500) can be a profitable strategy. By selling put spreads and widening the spread, traders can capitalize on market rallies while limiting downside risk. This approach is particularly effective when volatility is elevated, as it allows traders to take advantage of market movements without overexposing their positions. The strategy should be adjusted based on market conditions, with a focus on managing risk and taking profits when the market moves in the desired direction.
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StrategyPut Spread
AssetFutures
Time horizonShort-term
Entry / triggerHigh volatility environment
Target / exitProfit from market rallies
Invalidation / stopMarket moves against the short position
SpeakerScott
Risks- Market moves against the short position
- Volatility decreases
- Liquidity issues
Trade idea
AAPL put spread
contrarian play
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Strategyput spread
Assetequity
ExpirationSeptember
Time horizonshort-term
Entry / triggerstock price down 235
Target / exit235
Invalidation / stopstock price up
Speakerunknown
Structure / legs- September 295 put
- September 285 put
Risks- market volatility
- unexpected stock price movement
Trade idea
AAPL put spread
Apple's weakness after a downgrade could be exploited with a put spread
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Strategyput spread
Assetequity
ExpirationSeptember
Time horizonshort-term
Entry / triggerApple going lower
Target / exit266
Invalidation / stopmarket going higher
SpeakerScott
Risks- market reversal
- volatility changes
Trade idea
COINBASE put spread
The speaker mentions a trade involving a put spread on Coinbase that was closed on Friday afternoon. They note that the trade was not executed this morning due to the stock's price increase of $7. The trade was considered a good opportunity at the time, but the speaker acknowledges that the trade would not be repeated due to the price movement.
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Strategyput spread
Assetequity
Time horizonnot specified
Entry / triggerclosed on Friday afternoon
Target / exitnot specified
Invalidation / stopstock price increase of $7
SpeakerBat
Risks- price increase
- volatility changes
Trade idea
Trade idea put spread
selling a put spread was the perfect call
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Strategyput spread
ExpirationSep
Time horizonshort-term
Entry / triggerselling a put spread
Target / exitcredit
Invalidation / stopmarket movement
Speakerspeaker
Trade idea
SPY put spread
When executing a put spread, the focus should be on the delta of the spread rather than the individual legs. The net delta of the spread is what determines the strategic combination of deltas. The amount of credit received is a key factor in determining the trade's profitability. This approach allows traders to focus on the overall risk and reward profile of the spread rather than individual strike prices.
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Strategyput spread
Assetequity
Time horizonNot explicitly stated, but the trade is based on the delta of the spread and the amount of credit received.
Entry / triggerWhen the delta of the spread is calculated and the net delta is considered for the trade.
Target / exitNot explicitly stated, but the trade is based on the delta of the spread and the amount of credit received.
Invalidation / stopNot explicitly stated, but the trade is considered invalid if the delta of the spread is not properly calculated.
SpeakerUnknown
Risks- Market volatility
- Incorrect delta calculation
- Liquidity issues
Trade idea
ServiceNow put spread
The speaker suggests adjusting the put spread to collect a credit above $5 while keeping the position neutral to bullish. The trade is based on the idea that the stock may not move significantly in either direction, allowing the trader to profit from the premium collected. The speaker also mentions that the trade is equivalent to holding 20 shares of the stock.
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Strategyput spread
Assetstock
ExpirationJuly
Time horizonshort-term
Entry / triggerstock price at $91
Target / exitcredit above $5
Invalidation / stopif the stock price moves significantly against the position
SpeakerPhil
Structure / legs- buy puts at 89 or 90
- sell puts at 92 or 93
Risks- The stock could move against the position, resulting in a loss
- The credit collected may not be sufficient to offset potential losses
Trade idea
SLV put spread
The speaker sold a put spread on silver (SLV) at a dip, indicating a bullish outlook. The strategy involves buying the 48 put and selling the 51 put, which allows for profit if the price of silver rises above the short put strike price. The trade is considered a good entry point due to the dip in price, and the speaker is looking to capitalize on a potential rebound.
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Strategyput spread
Assetcommodity
Expirationlast week
Time horizonshort-term
Entry / triggerdip in silver price
Target / exitprice increase
Invalidation / stopprice drop below 48
SpeakerTom
Risks- If the price of silver drops below the 48 put strike, the trade could result in a loss.
- Market volatility could impact the effectiveness of the put spread strategy.
Trade idea
COINBASE Put Spread
The speaker sold the August 100 puts for $2, anticipating a rally within the expected range. The trade was based on the stock's premarket movement and the expected price range. The speaker believed the stock would rally within the expected range, making the put spread profitable. The trade was considered successful if the stock moved within the expected range, but it was invalid if the stock moved outside that range.
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StrategyPut Spread
AssetEquity
ExpirationAugust
Time horizonShort-term
Entry / triggerStock is down premarket
Target / exitStock rallies within expected range
Invalidation / stopIf the stock moves outside the expected range
SpeakerGary
Risks- Market volatility
- Unexpected price movements
- Liquidity issues