This post is restricted to paying members. To follow is specific new trade details:
Stock / Symbol: BP Amoco / BP
Option Strategy: bull put spread
Entry Date / Price: 29 July 2019 / $38.99
Price at this adjustment: $35.90
Update / Adjustment: Our short 38 strike put was exercised last night so we're now long 100 shares of BP at cost of $38 per share. We're going to sell our long 36 strike put for a little profit here. Then, over the next few days, we'll look to either sell the shares for a profit on a rebound of the stock (or) look to sell a covered call to generate more revenue from the trade while we're waiting for BP to recover.
Trade Details:
STC 1 BP 16Aug2019 36 put
for a min net credit of $0.25 per contract. The mid is currently at $0.29 (GTC order, limit order). I was filled at $0.29.
Requirements:
Cost/Proceeds: ($40)
Option Requirement: $0
Stock requirement: $3,800
Total Requirements: $3,760
Estimated Commission (round trip): $12 - $16
Max Risk: $3,760
Max Reward: unlimited with BP over $38
Profit Range: BP at / over $37.60
Suggested Downside Stop @ $35
