Norfolk Southern Corp Stock (NSC) fell today which was perfect for the trade idea outlined in today’s Watch List. The drop in the stock boosted the profit by 37%. I setup 4 credit put spreads and plan to add to this trade if the stock slips further which will drive up the put premiums for this same put strike.
Norfolk Southern Corp Stock (NSC)
TRADE SUMMARY: Credit Put Spread
Date: Mon Apr 1 2024
Equity: Norfolk Southern Corp Stock (NSC)
Approx Price At Entry: $251.00
Expiry: Apr 19 2024
Next Earnings: April 24 2024
Potential Profit: $356.00
Potential Return: 4.5%
Approx. Percent of Protection: 4.4%
TRADE DETAILS:
Short Puts: Sold 4 put contracts for Apr 19 2024 expiry at the $240.00 put strike for an average of $1.10 = $440.00
Long Puts: Bought 4 put contracts for Apr 19 2024 expiry at the $220.00 put strike for an average of $0.21 = ($84.00)
Spread Details: This forms a $20.00 credit put spread returning 4.5% earning $356.00 if held to expiry on Apr 19 2024
Buy To Close Early Offer: I am offering $0.40 to start and will reduce that amount as the trade moves toward expiry on Apr 19 2024
TRADE STATS:
Put Strike Sold: $240.00
Potential Profit: $356.00
Potential Return: 4.5%
Credit Put Spread Size $20.00
Approx. Percent Of Protection: 4.4%
Equity Would Have To Fall To Reach Short Put: $11.00
Capital In Use: $8,000.00
No commissions are taken into account in these trades. Remember do your own due diligence. I am not a financial planner or advisor and have no financial accreditations. Nothing you read are recommendations or suggestions. FullyInformed.com is for educational and entertainment purposes only.
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