$100K Account: Sell MSTX May 2 $30 Put

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The Trade at a Glance

  • Account Size: $100K
  • Underlying Stock: MSTX
  • Strategy: Sell 1 Cash‑Secured Put
  • Expiration: May 2
  • Strike Price: $30
  • Premium Collected: $165
  • Margin Requirement: $3,000 (cash to secure 100 shares)

Key Metrics

  • Max Profit: $165 (premium received today)
  • Break‑Even Price: $28.35 ($30 – $1.65)
  • Obligation: Buy 100 shares of MSTX at $30 if assigned

Why This Trade Makes Sense

  1. Quick Income – Two‑week option delivers a healthy $165 credit, juicing short‑term portfolio yield.
  2. Discount Entry – Effective purchase price of $28.35 provides a cushion below current market.
  3. High Implied Volatility – We’re harvesting rich vol while defining downside risk via secured cash.

Risk Management

  • Track MSTX price/IV; roll or close if we achieve 70‑80 % of max profit ahead of expiry.
  • Comfortable owning MSTX? Assignment at $30 (or $28.35 net) aligns with long‑term outlook.

Final Thoughts

Short‑dated cash‑secured puts like this fuel our $100K account with regular option income and manageable exposure.

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