Credit put spread analysis · · Good setup
Recommended credit put spread
AI-suggested setup based on the latest screen. Expiration Jul 16, 2026.
- Width
- $5.00
- Estimated credit
- $1.08
- Max risk
- $3.92
- Return on risk
- 27.6%
- Expiration
- Jul 16, 2026
For entertainment purposes only. Not a recommendation to trade. Disclaimer.
Earlier analyses
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The -5.83% drop in CBRE presents a potential entry for a moderately aggressive trader, but the setup is decent with notable concerns. The stock is still up 7.7% over two months, suggesting the recent pullback may be a he…
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CBRE presents a mixed opportunity after a sharp -5.83% drop. The stock is still up 7.7% over two months, indicating underlying strength, but the Trend score of 39% and Safety score of 5/9 suggest moderate, not high, conv…
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Analyzing CBRE after a -5.83% drop to $132.45. While the drop creates a potential entry point for a credit put spread, several factors argue against an immediate OPEN. The stock's high Implied Volatility (IV) of 100% is…
AI analysis
Options Trading Expert · May 18, 2026
Analyzing CBRE after a sharp -5. 83% drop to $128. 15.
The stock is still up 7. 7% over two months, indicating the broader uptrend is intact, but the recent sell-off creates a potential entry for a credit put spread. The IV of 38% is elevated, providing decent premium, but not excessively high.
The 'Safety' score of 5/9 is middling, suggesting moderate fundamental risk. The lack of a reversal signal means the downtrend could continue, increasing assignment risk on a short put. For a moderately aggressive trader, this is a borderline case.
The drop improves the premium for selling puts, but entering immediately after a large single-day decline carries the risk of continued momentum selling. A prudent approach would be to structure a spread that collects sufficient premium relative to risk. Using the 2026-07-17 expiration (59 DTE, slightly outside the ideal 35-40 day window but the only provided Friday), we can target a sell strike approximately 5% OTM.
This balances premium capture with a reasonable buffer. The calculated strikes and credit meet the critical risk/reward floor, making the trade mechanically sound, but the timing post-drop is the primary concern, capping the rating.