Stitch Fix Cash Secured Put (Earnings Trade) – CLOSED for $67 Overnight!

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On 9/22 SFIX rose to $41. We sold our 10/15 put for a $44 debit, leaving us with a $67/contract profit over night!

What’s the Trade?

9/21 – With SFIX trading at $35 and a nice high IV Rank of 59%, consider selling a put at the $28 strike for at least $111.

  • Sell the October 15 $28 put
  • Premium: Try to collect at least $111
  • Rationale: This is an undefined risk trade. You can make up to $111 if SFIX stays above $28 on or before 10/15 expiration. SFIX has a high IV Rank of 59% which helps us collect more premium. This trade collects $5.28 in daily theta decay. ReadyFor401K has identified a strong support level at 34.84 (yellow lines above) so this trade takes advantage of that, and still leaves additional room if we’re wrong.
  • Probability of making 55$: 86%
  • Max Loss: You’ll have to purchase 100 shares for $2800 if SFIX goes below 28 on or before 10/15.
  • Assumption: Bullish
  • Timeframe: ~Overnight to 3 weeks
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