🎯 $International Business Machines(IBM) Options Strategy: Bull Put Spread (Credit Spread)
- Underlying: IBM
- View: Cautiously optimistic for a short-term oversold bounce, but with significant downside risk. The strategy aims to capitalize on the high IV to collect premium while defining risk.
- Strategy Type: Credit Spread / Defined Risk
- Option Contract Portfolio:
- Sell 1 IBM Put, Strike $210, Expiry 2026-07-24
- Buy 1 IBM Put, Strike $205, Expiry 2026-07-24
- Max Gain & Loss:
- Max Gain: Net Credit Received = ~$1.34
- Max Loss: (Strike Difference - Net Credit) = ($5 - $1.34) = ~$3.66
- Initial Cost/Credit: Net Credit of ~$1.34 per share.
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