We like selling PUTs on MSTR because its high volatility consistently offers excellent premium income, making each trade worth the risk.
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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 | |
| Symbol | MSTR |
| Option Type | PUT |
| Strike Price | $375 |
| Expiration Date | 25 Jul 2025 |
| ENTRY | |
| Date | 2 Jul 2025 07:05 AM PST (Wed) |
| Stock Price | $384.5 |
| Delta | 0.35 |
| Option Price (Sold At) | $14 |
| Projected Holding Period | 22 days |
| Projected Return | 3.7% ($1,400/$37,500) |
| Projected Annualized Return | 83.7% |
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.
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