Rating
3.2 / 5
Recommendation
Hold
Credit put spread analysis · · Moderate setup
IV Rank
39
Implied volatility percentile
Trend
0.72
Long-term trend score
Safety
8/9
Quality checks passed
Drop
-13.6%
Day 3 of drop
1Y Change
24.2%
Trailing 12 months
Earnings
Clear
No event in window
Trade history on ANET
Every live credit put spread we've opened on this ticker — what was traded, when, and how it ended.
| Opened | Strikes (S/B) | Expiration | Credit | P/L | Outcome |
|---|---|---|---|---|---|
| May 7, 2026 | $135.00/$132.00 | Jun 11, 2026 | $1.29 | — | Open |
Earlier analyses
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The provided strike price guidance is fundamentally flawed and violates the core rules for constructing a credit put spread. The instructions state: 'sellStrike: 5-15% BELOW current price... buyStrike: 5-10% BELOW sellSt…
AI analysis
Options Trading Expert · May 7, 2026
The AI's notes below mention opening a position, but the rating (3.2/5) sits below our public-display threshold of 3.5/5, so this setup is marked Hold rather than as a tradable idea.
The -13. 61% drop in ANET presents a potential opportunity, but the setup is mixed, warranting a cautious 'OPEN' with a tight spread. The stock is still up 24.
2% over two months, indicating the recent sell-off is a pullback within a strong uptrend (Trend: 72%). The high Implied Volatility (IV) of 39% is favorable for selling premium, and the Safety score of 8/9 is robust. However, the absence of a reversal signal suggests the downward momentum may not be exhausted, increasing the risk of further decline.
The stock price of $141. 63 is elevated, so a 5-7% OTM sell strike provides a reasonable buffer. A $3 wide spread is chosen to keep risk defined and manageable while targeting a credit that meets the 0.
25 floor. The estimated credit of $0. 85 on a $3.
00 wide spread yields a credit-to-width ratio of 0. 283, which is acceptable but not stellar. The maximum risk is $2.
15 per spread. Given the moderately aggressive temperament and the need for a reasonable buffer after a sharp drop, this is a decent, but not strong, entry for a defined-risk play. A tighter spread is preferred to maximize the credit relative to risk in this volatile environment.