10/12 – Just closed this $URA Cash Secured Put for for 7% profit! BTC (Bought to Close) the 11/19 23 Put for $74 (recall we collected $145!)
With URA trading at 24.34, here’s how to make a bullish play in the stock by selling a put.
Sell a 23 dollar strike Cash Secured Put in URA for $145 in the November 19th Expiration Period
Premium: Try to collect at least $145
- Rationale: This is a undefined risk trade that would require you to purchase 100 shares of the stock for $2,300 should it drop below $23. It has a break even of $21.55. With an IV Rank above 36% and a 4 star liquidity rating we like this one. You can collect a $145 credit on entry and earn $1.33 in daily theta decay. Max profit is $145.
- Probability of making 72.50$/contract: 80%
- Assumption: Bullish. If it goes down, you could buy URA at a price of around $23/share, or roll the put out to December / January.
- Timeframe: 1-2 months.
- Management: Wait and watch for now.