Not all option trades go according to plan. Back in January we looked at a long-term cash secured put on Nio (NIO) stock.


At the time, NIO stock was trading around 55, but yesterday the stock dropped to 41.53.

In January we looked at selling the Jan. 21, 2022, put with a strike price of 55 which was trading for around 17.55.

With NIO stock dropping nearly 25% I thought it would be good to check in and see how that cash secured put is doing. On Wednesday, that January put was trading around 21.90 for a loss of around $435.

The capital at risk on the trade was $3,745 which can be calculated by taking the strike price (55) minus the premium

Read More At Article Source | Article Attribution