SMH ETF is continuing to climb today. I plan to add to this trade in any weakness or dips. I wouldn’t rush the trade but simply place an offer and let it sit. This ETF tends to be rather volatile and dips are common.
SMH – VanEck Vectors Semiconductor ETF
TRADE SUMMARY: Credit Put Spread
Date: Fri Nov 3 2023
Equity: SMH – VanEck Vectors Semiconductor ETF
Approx Price At Entry: $147.90
Expiry: Nov 17 2023
Next Earnings: NA
Potential Profit: $229.80
Potential Return: 2.9%
Approx. Percent of Protection: 6.7%
TRADE DETAILS:
Short Puts: Sold 6 put contracts for Nov 17 2023 expiry at the $138.00 put strike for an average of $0.433 = $259.80
Long Puts: Bought 6 put contracts for Nov 17 2023 expiry at the $125.00 put strike for an average of $0.05 = ($30.00)
Spread Details: This forms a $13.00 credit put spread returning 2.9% earning $229.80 if held to expiry on Nov 17 2023
Buy To Close Early Offer: I am offering $0.17 to start and will reduce that amount as the trade moves toward expiry on Nov 17 2023
TRADE STATS:
Put Strike Sold: $138.00
Potential Profit: $229.80
Potential Return: 2.9%
Credit Put Spread Size $13.00
Approx. Percent Of Protection: 6.7%
Equity Would Have To Fall To Reach Short Put: $9.90
Capital In Use: $7,800.00
No commissions are taken into account in these trades. Remember do your own due diligence. The author is not a financial planner or advisor and has no accreditations. The author may or may not enter or exit trades without notice.
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There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Do your own due diligence. Stocks, options and investing are risky and can result in considerable losses. The author is not a financial planner or advisor and has no accreditations and as such assumes no liability for your investment decisions. Everything presented or discussed are ideas for edu-entertainment only and not recommendations or suggestions. The author may or may not enter or exit trades without notice. Read the full disclaimer.