Selling 4 HOOD $90 puts expiring July 25th generates a 4.8% return in 21 days, capitalizing on strong premium, technical support above the strike, and a favorable risk/reward profile for short-term income.
A good time to sell a PUT is when the stock has dipped, as the premium tends to be higher.
Reasons
- Attractive Premium and Risk/Reward Profile: The $4.35 premium per contract (totaling $1,740 for 4 contracts) represents a 4.8% return on $9,000 at risk over a 21-day period, which annualizes to a highly competitive yield compared to other short-term opportunities. The strike price of $90 is below the current market price of $93.91, providing a buffer against moderate downside moves.
- Technical and Market Context: Robinhood (HOOD) has shown relative strength, trading above the $90 strike, and recent price action suggests support in the high $80s to low $90s range. The broader market environment remains constructive, with volatility elevated enough to keep option premiums attractive, but not so high as to signal imminent risk of a sharp selloff.
- Probability and Delta Considerations: The put’s delta of 0.37 indicates a roughly 37% probability of finishing in the money, meaning there is a statistically favorable chance the option will expire worthless and the full premium will be retained. The risk of assignment is acceptable given the willingness to own HOOD at an effective purchase price below current levels.
Entry
On July 3, 2025, we sold 4 $90 PUT option (CASH SECURED) on Robinhood (HOOD) that expired on July 25, 2025. The stock was trading at $93.91, and we collected $1,740 in premium.
| ASSET | |
| Symbol | HOOD |
| Option Type | PUT |
| Strike Price | $90 |
| Expiration Date | 25 Jul 2025 |
| ENTRY | |
| Date | 3 Jul 2025 09:00 AM PST (Thu) |
| Stock Price | $93.91 |
| Delta | 0.37 |
| Option Price (Sold At) | $4.35 |
| Quantity | 4 |
| Projected Holding Period | 21 days |
| Projected Return | 4.8% ($435/$9,000) |
| Projected Annualized Return | 127.1% |
P&L
Profit Potential
Updates
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Exit
This trade is still on-going.
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