Alrighty, let's get into it!

So, it's May 1st, 2023, and you're considering selling a put option for Google with a strike price of $90 and a premium of $4.80. The expiry date is January 19, 2024.

Hey, hey, hey! So you're thinking about selling a put option for Google, huh? Well, well, well, look at you, getting into the stock game. That's pretty cool, my friend!

Okay, so you're selling a put option with a strike price of $90, and you'll be collecting a premium of $4.80. Nice!

Now, let's get down to the nitty-gritty and work out those numbers real quick. Each option represents 100 shares of the underlying stock, so here we go:

You'll receive a premium of $480 ($4.80 x 100 shares) for selling one put option.

The maximum profit you can make from this trade is the premium received, which is $480.

The maximum loss you can incur from this trade is the strike price minus the premium received, which is $85.20 ($90 - $4.80). So your maximum loss is $8,520 ($85.20 x 100 shares per contract).

The percentage maximum profit is the premium received divided by the maximum loss, which is $480 / $8,520 = 0.0563, or 5.63%.

The profit percentage per month can be calculated by dividing the premium received by the number of months until expiration, which is 8 months. So, the profit percentage per month is $480 / 8 months = $60 per month.

There you have it! Don't forget to keep an eye on that expiration date and make sure you have enough cash on hand to cover the potential purchase of the underlying stock at the strike price if the options are exercised. But overall, not too shabby, my friend! You got this . 

Feature @Daily_Discussion @MillionaireTiger @TigerStars @MillionaireTiger repost and like and comment on my fun article so more people can be reached how to sell put options