Sell a put and buy a further-out-of-the-money put below it. The net credit is kept if the stock stays above the short strike; the long put caps the downside. One of the most-traded income structures.
Premiums start as Black-Scholes model values — overwrite them with your broker’s real quotes for exact numbers.
| price | today | +4d | +8d | +11d | +15d | +19d | +23d | +26d | expiry |
|---|---|---|---|---|---|---|---|---|---|
| 130.0 | 156 | 156 | 156 | 156 | 156 | 156 | 156 | 156 | 156 |
| 125.0 | 156 | 156 | 156 | 156 | 156 | 156 | 156 | 156 | 156 |
| 120.0 | 154 | 155 | 156 | 156 | 156 | 156 | 156 | 156 | 156 |
| 115.0 | 149 | 152 | 154 | 155 | 156 | 156 | 156 | 156 | 156 |
| 110.0 | 133 | 139 | 144 | 148 | 152 | 155 | 156 | 156 | 156 |
| 105.0 | 89 | 100 | 110 | 119 | 131 | 142 | 152 | 155 | 156 |
| 100.0 | 0 | 10 | 23 | 34 | 52 | 75 | 103 | 130 | 156 |
| 95.0 | -143 | -140 | -135 | -132 | -125 | -115 | -100 | -82 | -44 |
| 90.0 | -309 | -316 | -326 | -334 | -348 | -368 | -396 | -430 | -544 |
| 85.0 | -443 | -454 | -467 | -478 | -494 | -511 | -529 | -540 | -544 |
| 80.0 | -514 | -521 | -527 | -532 | -537 | -541 | -543 | -544 | -544 |
| 75.0 | -537 | -539 | -541 | -542 | -543 | -543 | -543 | -544 | -544 |
| 70.0 | -541 | -542 | -542 | -542 | -543 | -543 | -543 | -544 | -544 |
Dollar P&L for the whole position. Pre-expiry cells are model values (constant IV); real marks will differ with volatility and skew.
An options position is a view on the company underneath. Our SEC-grounded verdicts, quality scores and filings coverage are free for every US-listed name.
Educational model, not trade advice. Options involve substantial risk and are not suitable for every investor — read the OCC’s Characteristics and Risks of Standardized Options. Model values use Black-Scholes with your inputs (constant volatility, European exercise, no dividends) and will differ from live market prices.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.