Note: This is a Naked Put Trade!
I sold 2 SSOSM (July $65 Puts) for $1.65 to rake in about $320.00. This represents a 3% return with no capital investment except maintaining a capital reserve of $13,000 to fulfill a possible assignment.
How does this trade work? If SSO drops to $65 or less on July expiry (July 18th), I will be forced to buy 200 shares of SSO at $65 ($13,000 total). If SSO stays above $65 on July expiry, the options expire worthless and I keep the premium.
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