Qualcomm Stock (QCOM) reach $120.36 this morning and could break through $120 this week. I setup two trades, both small, which I will add to if I can continue to earn more put premiums. The first trade is below.
Below $120 the stock would be making a new 52 week low. The stock is already down 37%.
Qualcomm Stock (QCOM)
Trade Summary: Credit Put Spread
Equity: Qualcomm Stock (QCOM)
Approx Stock Price At Entry: $121.00
Expiry: Jul 8 2022
Potential Profit: $325.00
Potential Return: 4.3%
Trade Details:
Short Puts: Sold 5 put contracts for Jul 8 2022 expiry at the $115.00 put strike for $0.67 = $335.00
Long Puts: Bought 5 put contracts for Jul 8 2022 expiry at the $100.00 put strike for $0.02 = ($10.00)
Spread Details: This forms a $15.00 credit put spread returning 4.3% earning $325.00 if held to expiry on Jul 8 2022
Buy To Close Early Offer: I am offering $0.33 to start and will reduce that amount as the trade moves toward expiry on Jul 8 2022
Trade Stats:
Approx Stock Price: $121.00
Approx Percent Of Protection: 5.0%
Stock Would Have To Fall To Reach Short Put: $6.00
Credit Put Spread Size: $15.00
Capital In Use: $7,500.00
Potential Profit If Held To Expiry: $325.00
Potential Return If Held To Expiry: 4.3%
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