The Trade at a Glance
- Account Size: $100K
- Underlying Stock: $NBIS
- Strategy: Sell 1 Cash‑Secured Put
- Expiration: May 16
- Strike Price: $20
- Premium Collected: $200
- Margin Requirement: $2,000 (cash to secure 100 shares)
Key Metrics
- Max Profit: $200 (premium received up‑front)
- Break‑Even Price: $18.00 ($20 – $2.00)
- Risk: Obligation to buy 100 shares of NBIS at $20 if assigned
Why This Trade Makes Sense
- Instant Income – A quick $200 credit delivers a solid yield on capital for one‑month duration.
- Discount Entry – Effective purchase price would be $18, nearly 10% below strike should assignment occur.
- Volatility Harvest – NBIS options remain rich; we’re capturing that premium while defining risk.
Risk Management
- Monitor NBIS price/IV; roll or close if profit target (70‑80%) hits early.
- Comfortable owning NBIS? Assignment at $18 effective keeps long‑term outlook intact.
Final Thoughts
Cash‑secured puts are a cornerstone of our $100K strategy—steady credits, controlled risk, flexible exits.
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