Credit put spread analysis · · Good setup
Hypothetical credit put spread idea
AI-evaluated setup from the latest screen — for education only. Expiration Aug 27, 2026.
- Width
- $2.00
- Estimated credit
- $0.65
- Max risk
- $1.35
- Return on risk
- 48.1%
- Expiration
- Aug 27, 2026
Hypothetical AI analysis for education & entertainment — not financial advice or a recommendation to trade. Disclaimer.
Earlier analyses
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[dedup-flagged] This selloff deserves a closer look — the chart shows a clear uptrend over two months, and yesterday's drop is testing a key prior consolidation level around $46. IV is rich at 76%, pricing in more volati…
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[dedup-flagged] This selloff deserves a closer look — a 5.5% drop on a biotech with 100% IV is a volatility gift, but the chart shows a stock that's still up 15% in two months and just broke its uptrend. Support is untes…
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Support levels are the headline: the stock has been in a strong uptrend but just got smacked back to a key prior consolidation zone around $48. That's a logical floor to defend. IV is screaming at 100%, which is rich ver…
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Support levels are the headline: that -5% drop landed right on the 50-day moving average and a prior consolidation zone around $51. The doji reversal suggests a fight here, but IV at 100% is screaming — it's double the r…
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Support levels are the headline: that -5% drop landed right on the 50-day moving average, a level it's respected for months. IV at 91% is rich, but it's justified — realized vol is 53%, so the premium actually pays for t…
AI analysis
Options Trader · Jul 20, 2026
This selloff deserves a closer look — a 5. 5% drop on a Bullish Engulfing reversal day screams panic, not a trend break. The chart shows a clear uptrend over two months, and yesterday's flush likely tagged a key reaction level.
IV at 70% is rich, but it's justified with realized vol at 53% — the math says we're getting paid for the risk. The skeptic in me notes the low safety score, so we'll define it tightly. Sell the $45 put (6.
5% OTM, ~0. 30 delta) and buy the $43 put for a $2 wide spread. That's a narrow, manageable max loss.
We're targeting a $0. 65 credit, a 32. 5% return on risk that clears our 25% floor.
Verdict: The bounce is coming, and we're getting paid to bet on it.