Here\u2019s the breakdown of the trade\u2014the selling of a Put option<\/strong>:<\/p>\n Sell to Open:<\/strong> 1 contract of FSLR 7\/3\/25 $155.00 Put @ $2.50<\/p>\n<\/li>\n Premium Collected:<\/strong> $250<\/p>\n<\/li>\n Stock Price at Entry:<\/strong> $160<\/p>\n<\/li>\n<\/ul>\n <\/p>\n The stock dropped $6 today on a down NASDAQ day and I don’t see it dropping another $5 by Thursday’s close. In addition RBC Capital analyst Christopher Dendrinos maintains First Solar with an Outperform and raises the price target from $188 to $200.<\/p>\n If FSLR stays above $155 through expiration, I\u2019ll simply keep the premium without having to buy the stock.<\/p>\n<\/li>\n If FSLR drops below $155 and I\u2019m assigned, I\u2019ll own 100 shares at $155 each, which I\u2019m comfortable with given the multiple upgrades. My actual breakeven is $152.50 (strike price minus premium received)\u00a0From there, I\u2019ll shift into my \u201cWheel Strategy\u201d and start selling Calls against those shares.<\/p>\n<\/li>\n<\/ul>\n This is a straightforward income trade with the added benefit of picking up shares at a discount if assigned.<\/p>\n Why I Like This Strategy:<\/strong> <\/p>\n \ud83d\udcc8Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" First Solar (FSLR) \u2014 Cash-Secured Put Here\u2019s the breakdown of the trade\u2014the selling of a Put option: \ud83d\udcc8 Trade Details: Sell to Open: 1 contract of FSLR 7\/3\/25 $155.00 Put @ $2.50 Premium Collected: $250 Stock Price at Entry: $160 Trade Rationale: The stock dropped $6 today on a down NASDAQ day and I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-15533","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-42x","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/15533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15533"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/15533\/revisions"}],"predecessor-version":[{"id":15535,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/15533\/revisions\/15535"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\ud83d\udcc8 Trade Details:<\/strong><\/h4>\n
\n
Trade Rationale:<\/strong><\/h4>\n
\n
\u2705 Summary:<\/strong><\/h4>\n
Selling cash-secured Puts is a way to either:
\u2705 Earn income if the stock holds up, or<\/strong>
\u2705 Buy a quality stock at a discount and keep collecting premiums by sellin<\/p>\n