Credit put spread analysis · · Good setup
Recommended credit put spread
AI-suggested setup based on the latest screen. Expiration May 28, 2026.
- Width
- $6.00
- Estimated credit
- $1.60
- Max risk
- $4.40
- Return on risk
- 36.4%
- Expiration
- May 28, 2026
For entertainment purposes only. Not a recommendation to trade. Disclaimer.
Earlier analyses
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The stock has dropped over 5% recently, indicating a potential buying opportunity. However, we should wait for a reversal signal before entering a credit put spread. The data suggests the stock is still trending upwards…
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The stock has seen a significant drop of 5.70% recently, making it an attractive opportunity for a credit put spread. With the stock currently at $121.68, we can target a sell strike around 10% lower, letting us sell the…
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This -5.64% drop in CF presents a strong opportunity for a credit put spread. The stock is up 26.6% over the past two months, indicating a solid uptrend and bullish sentiment. However, the Safety score of 4/9 suggests so…
AI analysis
Options Trading Expert · Apr 21, 2026
The stock's 9.65% drop offers a decent credit put spread opportunity. Current price is $122.46, and it's up 22.9% over 2 months with a trend score of 61% and safety score of 7/9. Volatility is at 61%. Let's capitalize on this correction with a credit put spread.
Sell Strike: Choose a sell strike 5-15% below the current price. I recommend $112.00. This puts the sell strike 9% below the current price, within the acceptable range.
Buy Strike: The buy strike should be 5-10% below the sell strike. I recommend $106.00. This puts the buy strike 5.3% below the sell strike and 13.4% below the current price.
Spread Width: The spread width is $6.00, which is within the ideal $1-$5 range.
Estimated Credit: Be conservative on the credit estimation. Given the stock's current price, price drop, and volatility, I'd estimate $1.60 as a reasonably attainable credit.
Expiration: The earliest date within the valid expiration range (2026-05-27 to 2026-06-01) is 2026-05-29. This leaves 37 days to expiration.
Risk/Reward Ratio: The credit-to-width ratio is 0.26, which meets the 0.25 threshold.
Overall, given the stock's recent trend and price drop, this is a suitable opportunity to open a credit put spread with a rating of 4.3.