Pro Put-Seller is a cash-secured put trading program.
It involves writing a put option while at the same time setting aside enough cash to buy the stock in case things move against you.
When you write the option, your account immediately gets a juicy premium.
The goal is to have the put expire worthless so that your premium constitutes a profit.
The trick to making this trade work is to choose an option strike price that the stock is unlikely to dip below right after it announces earnings.
(You can’t just use any old strike price.)
That’s where my proprietary algorithm comes in.
It runs complex calculations on thousands of stocks to find strike prices that are unlikely to be breached right after earnings are released.
The best candidates are highlighted in an easy-to-follow database you can use to design optimal trades.
This data includes:
The stock and its symbol
The suggested strike price
The projected trade open date and the options expiration date
Whether it’s a pre-open or post-market earnings announcement (EA)
The stock’s predicted volatility in the wake of its EA
Here’s what a hypothetical example looks like:
Symbol: XYZ (not a real symbol; it’s here for illustrative purposes)
Company: XYZ, Inc. (not the real stock name)
Strike Price: $3 (this is updated daily)
Projected Trade Open Date: Fri., Oct. 20, 2023
Earnings Date: Mon., Oct. 23, 2023
Earnings Time: After Market Close
Options Expiration Date: Wed., Oct. 20
Predicted Volatility: 16%
Armed with all this data, you can design a trade using the strike price my algorithm suggests (in this case $3 a share).