Credit put spread analysis · · Good setup
Hypothetical credit put spread idea
AI-evaluated setup from the latest screen — for education only. Expiration Aug 20, 2026.
- Width
- $2.00
- Estimated credit
- $0.00
- Max risk
- $2.00
- Return on risk
- 0.0%
- Expiration
- Aug 20, 2026
Hypothetical AI analysis for education & entertainment — not financial advice or a recommendation to trade. Disclaimer.
Earlier analyses
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Credit here has to justify the gap risk — and with IV at 100% and a 2.19 IV/RV ratio, it does. The stock is up 28% in two months, so this -5% dip is a pullback within a strong uptrend. The Doji reversal signal suggests t…
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Credit here has to justify the gap risk — and at 86% IV, it does. The stock's up 28% in two months, so this -5% pullback is a healthy breather. The doji reversal signal suggests selling pressure is exhausting, and the 75…
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Structure-wise, this is a classic 'hot stock cooling off' play. ALK ripped 28% in two months, so a 5% flush is just profit-taking, not a trend break. The chart shows $45 as a major support level from the May breakout — t…
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Credit here has to justify the gap risk — and at 100% IV, it does. The stock is still up 6% over two months, and that Bullish Engulfing pattern suggests this -7.6% flush found a floor near $50. But the chart is messy; we…
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The premium math is where this gets interesting: IV at 100% screams panic, but the chart shows a stock that just cratered through its 2-month uptrend. That Bullish Engulfing pattern is a flicker of hope, but it's a singl…
AI analysis
Options Trader · Jul 15, 2026
Credit here has to justify the gap risk — and at 100% IV, it does. The stock's up 28% in two months, so this -5% pullback is a healthy breather, not a breakdown. The doji reversal signal suggests the selling is finding a floor near the $46.
50 prior consolidation zone. That's our key support. The math is compelling: IV is double the realized vol, so we're selling expensive fear.
A $45/$43 put spread 36 days out captures a decent $0. 75 credit on a $2-wide risk. That's a 0.
375 credit-to-width ratio, paying you to defend a level the chart already respects. Max loss is defined and manageable. Verdict: Sell the panic, buy the floor.