🎯 $IBM Options Strategy: Short Put Spread with a Twist (Bearish Credit Spread)
- Underlying: IBM
- View: Cautiously Bullish (short-term oversold rebound), but expecting consolidation in the $255-$275 range with significant resistance at $287. The extremely high IV (97.61% percentile) presents a premium selling opportunity.
- Strategy Type: Credit Spread / Volatility Selling
- Option Contract Portfolio:
- Sell 1 IBM 2026-07-02 $270.00 PUT @ $10.90 (Mid)
- Buy 1 IBM 2026-07-02 $255.00 PUT @ $3.70 (Mid)
- Max Gain & Loss:
- Max Gain (Credit Received): $7.20 per spread ($720 per contract)
- Max Loss: $7.80 per spread ($780 per contract) [($270 - $255) - $7.20]
- Initial Cost/Credit: Net Credit of ~$7.20
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