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
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Google cloud is the most affordable out of the big three cloud services. If they can show the AI capabilities and all the other integrations with Google products packaged in - Azure and AWS will surely fall behind in new installs / migrations. I am actually surprised about how little we hear about this in their marketing - I would assume that they would be all over this.
GOOG getting a peck on the cheek today but some real love should be coming up after a few more sips of champagne..
Peace & and harmony to the whole world! Alphabet made sure that everyone today is getting M&Ms and dried mangos! Lol
Google AI is the best in the world. user products r in pipeline. it's better than meta AI. we r going up. sky is the limit.
Google AI is the best in the world. user products r in pipeline. it's better than meta AI. we r going up. sky is the limit.
Google cloud took a bite out of Microsoft cloud. we gained 28%. they lost. Google will rule.
Amazing market green and Goog is down. Foreign Hedge funds should be banned.
Great ariticle, would you like to share it?
GOOGL cloud growth is best.