The Trade at a Glance
- Underlying Stock: CleanSpark Inc. ($CLSK)
- Strategy: Rolling a Cash-Secured Put
- Action: Buy to close Feb 14 $11 Put and sell Feb 28 $11 Put
- Expiration: February 28
- Strike Price: $11
- Premium Received: $129 additional credit
- Margin Requirement: $1,100 (secured cash for 100 shares)
Key Metrics
- Net Credit from Roll: $129
- Break-Even Price: Adjusted lower due to rolling.
- Risk: Obligation to buy 100 shares of $CLSK at $11 if assigned.
Why This Trade Makes Sense
Managing Position Efficiently
Rolling the put extends the trade, collecting additional premium while maintaining exposure.
Stock Acquisition at a Discount
If assigned, you buy $CLSK at an effective price lower than the initial trade, improving cost basis.
Capital Efficiency
A $100K account can maintain flexibility while generating premium income.
Risk Management
- Max Loss Scenario: If $CLSK falls to zero, potential loss is $1,100 minus collected premiums.
- Mitigation Strategies:
- Roll further or close when it makes sense to adjust risk exposure.
- Only trade if comfortable owning $CLSK long-term.
Why $CLSK?
CleanSpark operates in the Bitcoin mining and energy efficiency sector, making it a volatile but high-potential stock. Selling puts on stocks with growth potential allows traders to generate income while managing downside risks. Always analyze earnings, sector trends, and market conditions before trading.
Final Thoughts
Rolling options is a strategic move to manage risk and maximize returns. For a $100K account, this $CLSK put roll maintains premium collection while optimizing trade positioning.
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Disclaimer: This post is for educational purposes only. Past performance isn’t indicative of future results. Options trading carries significant risk.
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