On May 2, 2025, the $100K account initiated a new options trade by selling one OKLO Inc. (OKLO) May 9 $26.5 put, receiving a premium of $145.
Trade Details:
- Underlying Asset: OKLO Inc. (OKLO)
- Trade Date: May 2, 2025
- Position: Short Put
- Strike Price: $26.5
- Expiration Date: May 9, 2025
- Premium Received: $145
- Account Size: $100,000
Rationale:
This short put position was opened to capitalize on favorable option pricing and short-term time decay. The $26.5 strike sits below recent support levels, providing a buffer and improving the probability of profit.
Key reasons for entering this trade:
- Short-Duration Setup: With less than a week to expiration, time decay (theta) will work quickly in favor of the seller.
- Defined Risk: In a $100K account, the notional risk of $2,650 is well within position sizing parameters.
- High Premium Relative to Strike: The $145 credit represents an attractive yield on risk capital over a short window.
Trade Outcome Scenarios:
- OKLO Closes Above $26.5 at Expiration:
- The put expires worthless.
- Full $145 premium is retained as profit.
- OKLO Closes Below $26.5 at Expiration:
- Shares may be assigned at $26.5.
- Effective purchase price after credit: $25.05
- If assigned, the plan is to continue managing the position with future covered calls or rollouts.
Risk Management Plan:
- Monitor for early adjustment opportunities if the price approaches the strike.
- Roll the position forward if needed to avoid assignment and continue collecting credit.
Conclusion:
This trade aligns with the overall strategy of short-duration, high-probability premium selling in a well-capitalized account.
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