AI's take on Selling SE $110 Put (March 7 Expiry) - Super helpful

Key Considerations

1. Current Options Data (March 7, $110 Put)

Bid/Ask Spread : $1.13 (bid) ↔ $1.20 (ask)

Mid-Price : ~$1.165

Volume/Open Interest : 159 contracts traded / 390 open interest (moderate liquidity).

Implied Volatility (IV) : 121.35% (elevated, reflects higher risk/reward).

Probability of Profit: 12.11% (87.89% chance SE stays above $110 at expiry).

Theta: -$0.365/day (accelerated time decay favors sellers).

2. Recommended Limit Price

To balance execution speed and premium maximization:-

Aggressive: Set near $1.18–1.20 (closer to ask). Risk of non-fill increases.

Balanced: Target $1.15–1.17 (mid-price range). Likely fills with moderate urgency.

Conservative: Anchor at $1.13–1.14 (bid-side). Higher fill probability, lower premium.

3. Critical Risk Factors

Assignment Risk: SE must close above $110 by March 7. Monitor SE's price action closely.

IV Crush: High IV (>120%) implies volatility expectations are priced in. A drop in IV could erode premium value.

Margin Requirement: Ensure sufficient collateral to cover potential assignment.

4. Strategic Outlook

Bear Case: SE closes <$110 → Assigned shares at $110 (-$1.16 premium = net cost $108.84/share).

Bull Case: SE stays >$110 → Keep $1.16 premium (≈1.05% return on collateral in 3 days).

Disclaimer: Options involve significant risk. This analysis reflects data as of March 4, 2025. Market conditions can change rapidly. Consult a financial advisor before trading.