Category: Trades

Trade: Sold 4 HOOD $90 7/25 PUT for $1740 (4.8% ROI)

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
SymbolHOOD
Option TypePUT
Strike Price$90
Expiration Date25 Jul 2025
ENTRY
Date3 Jul 2025 09:00 AM PST (Thu)
Stock Price$93.91
Delta0.37
Option Price (Sold At)$4.35
Quantity4
Projected Holding Period21 days
Projected Return4.8% ($435/$9,000)
Projected Annualized Return127.1%

P&L

Profit Potential

Updates

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Exit

This trade is still on-going.

EXIT
Date
Stock Price
Delta
Option Price (Acquired At)
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Realized Profit/Loss
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Annualized Return

Trade: Sold TSLA $300 7/25 PUT for $1225 (4.1% ROI)


We like selling PUTs on TSLA because its high volatility consistently offers excellent premium income, making each trade worth the risk.

This trade represents a 4.1% ROI in 21 days (100.5% annualized) opportunity.

Tesla, Inc. Common Stock is estimated to report earnings on 07/22/2025.

If you are new to option trading, please check out Option Basics.

Reasons

  • Strong Technical Support Near $300: Tesla’s stock has established significant support levels just below $300, with accumulated volume support at $284.70 and $272.20. These levels have historically attracted buyers, making a sharp breakdown less likely in the near term.
  • Recent Downside Already Priced In: The stock has recently experienced a notable decline, with a sell signal issued from a pivot top in late May and a drop of over 13% since then. Current technical indicators suggest the worst of the short-term selling may be behind us, and the stock is now closer to support than resistance.
  • Premium Collected Is Attractive: Selling the $300 put for $12.25 generates a solid premium, offering a cushion against further downside. With Tesla trading near $315 at the time of the trade, the breakeven is effectively reduced to around $287.75, which is just above a major support zone.

Entry

On July 3, 2025, we sold a $300 PUT option (CASH SECURED) on Tesla (TSLA) that expired on July 25, 2025. The stock was trading at $313, and we collected $1,225 in premium.

ASSET
SymbolTSLA
Option TypePUT
Strike Price$300
Expiration Date25 Jul 2025
ENTRY
Date3 Jul 2025 07:25 AM PST (Thu)
Stock Price$313
Delta0.35
Option Price (Sold At)$12.25
Projected Holding Period21 days
Projected Return4.1% ($1,225/$30,000)
Projected Annualized Return100.5%

P&L

Profit Potential

Updates

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Exit

This trade is still on-going.

EXIT
Date
Stock Price
Delta
Option Price (Acquired At)
PROFIT & LOST
Realized Profit/Loss
Return
Annualized Return

Trade: Sold MSTR $375 7/25 PUT for $1400 (3.7% ROI)

We like selling PUTs on MSTR because its high volatility consistently offers excellent premium income, making each trade worth the risk.

If you are new to option trading, please check out Option Basics.

Reasons

This trade offers a compelling risk-reward setup. We’re aiming to generate $1,400 in premium over 3 weeks, which is a 3.7% return on a $37,000 cash-secured PUT — a strong short-term income opportunity. With a delta of 0.35, there’s about a 65% probability the option will expire worthless, allowing us to keep the full premium.

Even in the worst-case scenario, we’d be assigned 100 shares of MSTR at an effective price of $361 ($375 strike minus $14 premium), which is a solid entry point for a long-term hold. We can then transition into the wheel strategy by selling covered CALLs, continuing to reduce our cost basis while generating ongoing income.

Entry

On July 2, 2025, we sold a $375 PUT option (CASH SECURED) on MicroStrategy (MSTR) that expired on July 25, 2025. The stock was trading at $379.76, and we collected $1,039.32 in premium.

ASSET
SymbolMSTR
Option TypePUT
Strike Price$375
Expiration Date25 Jul 2025
ENTRY
Date2 Jul 2025 07:05 AM PST (Wed)
Stock Price$384.5
Delta0.35
Option Price (Sold At)$14
Projected Holding Period22 days
Projected Return3.7% ($1,400/$37,500)
Projected Annualized Return83.7%

Stock Price Trend

Option Price Trend

P&L

Potential Profit & Loss

Updates

  • 25/7/2 (Wed)- We entered the trade on July 2nd. By the close, the stock had risen from $384 to $402 (⬆️ +4.7%). The PUT option price dropped from $14 to $9 (⬇️ -3.5%), and we’re currently sitting on a $500 profit (⬆️ +37%).

Exit

This trade is still on-going.

EXIT
Date
Stock Price
Delta
Option Price (Acquired At)
PROFIT & LOST
Realized Profit/Loss
Return
Annualized Return

Trade: Sold MSTR $370 7/3 PUT for $1040 (2.81% ROI)

We like selling PUTs on MSTR because its high volatility consistently offers excellent premium income, making each trade worth the risk. The large price swings boost option prices, allowing us to collect more upfront while managing risk with smart strike selection.

If you are new to option trading, please check out Option Basics.

Risks

The main risk of this trade is that if MSTR drops below $370, we could be assigned and required to buy 100 shares at that price — a $37,000 capital commitment. While we’d still keep the premium, we’d be exposed to potential losses if the stock keeps falling.

This strategy works best with strong underlying stocks that we’re comfortable owning long-term, like MSTR. If assigned, we not only keep the premium but also acquire the stock at an effective discount — making it a smart way to build a position in quality companies.

Entry

On June 12, 2025, we sold a $370 PUT option (CASH SECURED) on MicroStrategy (MSTR) that expired on July 3, 2025. The stock was trading at $379.76, and we collected $1,039.32 in premium.

ASSET
SymbolMSTR
Option TypePUT
Strike Price$370
Expiration Date03 Jul 2025
ENTRY
Date12 Jun 2025
Delta0.30
Option Price (Sold At)$10.40
Projected Return2.81% ($1,040/$37,000)

Updates

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Exit

We then closed the position early on June 27, 2025, by buying it back for $155.68. That gave us a net profit of $883.64 over just 15 days, with minimal risk. This trade gives an annualized return of 74.7%

EXIT
Date27 Jun 2025
Option Price (Aquired At)$1.55
Delta0.15
PROFIT & LOST
Realized Profit/Loss$885
Return2.39% ($885/$37,000)
Annualized Return74.7%