- conservative choice:
- sell June 8th 1600~1580 put spread with around $6
- break even price: 1594
- potential gain : $6 per contract, 6/(20-6) = 42.8%
- potential loss: $14 per contract ,100%
- better for those who can take the shares if being assgined
- the odds price close above 1580 on June 8th is about 65%
- aggressive choice:
- sell June 15th 1650~1600 put spread with around $27
- break even price: 1623
- potential gain: $27 per contract ,27/(50-27) = 117.3%
- potential loss : $23 per contract , 100%
- better for those who can take the shares if being assigned
- the odds price above 1600 on June 15th is about 52%
Note: the potential loss is not necessary up to 100%, you always can close the position before option expiration date if you feel the trade will not be successful.
My personal opinion is not for investment purpose, but for demonstration and education.
