The Trade at a Glance
- Account Size: $100K
- Underlying Stock: Nubia Brand International Corp. ($NBIS)
- Strategy: Rolling a Cash-Secured Put
- Action: Rolled $NBIS put to Aug 15 $44 strike for an additional $40 credit
Key Metrics
- Additional Premium Collected: $40
- New Expiration Date: August 15
- Adjusted Break-Even Price: Lowered by the additional credit received.
- Risk: Obligation to buy 100 shares of $NBIS at $44 if assigned.
Why This Trade Makes Sense
Extending the Trade for More Premium
Rolling the put allows us to collect additional credit while keeping the strategy in play.
Lowering Cost Basis
Every roll lowers the break-even price, improving the trade’s risk-reward profile.
Capital Efficiency
This strategy continues to generate income while keeping flexibility for future adjustments.
Next Steps
- If NBIS stays above $44: The put expires worthless, and we keep the entire premium.
- If NBIS moves below $44: We may roll again or accept assignment for a discounted entry.
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