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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- Spring Cowper·03-04TOPgood. let’s see how this strategy works tonight..LikeReport