- Sell to Open ASML 11-Aug-23 750 Put
- Buy to Open ASML 11-Aug-23 755 Put
This is a Bearish Debit Put Spread on ASML Holding N.V. with an expiration date of August 11, 2023. Here's a breakdown of the trade:
1. Strategy: A Bearish Debit Put Spread is a bearish strategy that involves buying a put option and selling another put option with a lower strike price on the same underlying asset and with the same expiration date. This strategy is used when the trader expects a moderate decline in the price of the underlying asset.
2. Trade Setup: In this case, the trader is buying to open a put option on ASML_US with a strike price of $755 and selling to open a put option with a strike price of $750. Both options expire on August 11, 2023.
3. Premium and Risk: The trader is paying a net premium of $2.35 per share (the difference between the mid prices of the two options), for a total cost of $235 (since each contract represents 100 shares). This is also the maximum risk of the trade. The maximum profit is $265, which is the difference between the strike prices ($5) minus the net premium paid ($2.35), multiplied by 100.
4. Breakeven Point: The breakeven point at expiration is $752.65, which is the higher strike price minus the net premium paid.
5. Probability of Profit (POP): The estimated POP is 51.31%. This is a rough estimate of the chance that the trade will be profitable at expiration, based on the position's delta.
6. Implied Volatility (IV) Rank: The IV Rank is 13.82, which is relatively low. This means that options on JPM are currently cheaper compared to their historical prices.
7. Days to Expiration (DTE): There are 24 days left until the options expire.