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 | |
| Symbol | MSTR |
| Option Type | PUT |
| Strike Price | $370 |
| Expiration Date | 03 Jul 2025 |
| ENTRY | |
| Date | 12 Jun 2025 |
| Delta | 0.30 |
| Option Price (Sold At) | $10.40 |
| Projected Return | 2.81% ($1,040/$37,000) |
Updates
–
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 | |
| Date | 27 Jun 2025 |
| Option Price (Aquired At) | $1.55 |
| Delta | 0.15 |
| PROFIT & LOST | |
| Realized Profit/Loss | $885 |
| Return | 2.39% ($885/$37,000) |
| Annualized Return | 74.7% |