LD Lossdog Research
symbol

XYZ

2 matching records.

Trade idea

XYZ Bull Put Spread

A bull put spread involves selling a put at a higher strike price and buying a put at a lower strike price. This strategy is used when the trader is bullish on the stock and wants to own it at a predetermined price. If the stock price is between the strike prices at expiration, the short put will be exercised, and the long put will be worthless. The trader can then take ownership of the stock at the lower strike price. If the stock price falls below the lower strike price, the trade will result in a loss.

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StrategyBull Put Spread
AssetEquity
ExpirationNot specified
Time horizonUntil expiration
Entry / triggerStock price is between the strike prices
Target / exitStock price reaches the higher strike price
Invalidation / stopStock price falls below the lower strike price
SpeakerNot specified
Structure / legs
  • Short a put at a higher strike price
  • Long a put at a lower strike price
Risks
  • If the stock price falls below the lower strike price, the trade will result in a loss.
  • The trader may have to pay the difference between the strike price and the stock price if the stock is assigned.
  • The trader may have to pay additional fees or taxes if the stock is sold.
BullishequitybullishXYZ
high confidenceVerify in video at 12:56 ↗
Q&A

Is the expected move on the weekly options for XYZ stock based on calculating all open interest in that stock's options?

No, the expected move is based on the options implied volatility, not open interest.

View full notes
Actionable takeawayThe expected move for options is calculated using implied volatility, not open interest.
XYZoptionsvolatility
high confidenceVerify in video at 45:36 ↗