EMR
Emerson Electric
Rating 4.5 / 5 Recommendation Open trade

Credit put spread analysis · · Strong setup

IV Rank
92
Implied volatility percentile
Trend
0.81
Long-term trend score
Safety
5/8
Quality checks passed
Drop
-6.3%
Day 3 of drop
1Y Change
16.5%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

The -6.26% drop in EMR presents a strong opportunity for a credit put spread. The stock is up 16.5% over 2 months, indicating a possible short-term peak. With an IV of 92%, there's enough volatility to make the spread worthwhile.

Looking at the strike prices, we can sell the $140 put and buy the $130 put, giving us a spread width of 10% ($148.85 current price). This spread would yield a realistic credit of around $3.50.

However, we should be aware of the stock's positive trend and high safety score, which might indicate a longer-term bullish outlook. Nonetheless, the current drop offers a good risk/reward ratio for a credit put spread.

Recommended credit put spread

AI-suggested setup based on the latest screen. Expiration Mar 19, 2026.

Sell
$140.00
Short put (collects premium)
Buy
$130.00
Long put (caps risk)
Width
$10.00
Estimated credit
$3.50
Max risk
$6.50
Return on risk
53.8%
Expiration
Mar 19, 2026

For entertainment purposes only. Not a recommendation to trade. Disclaimer.

Earlier analyses

  1. 4.5/5 Open trade

    The -6.26% drop in EMR presents a strong opportunity for a credit put spread. The stock remains bullish with an 81% trend and 16.5% gain in the last 2 months. However, the 28% IV and safety rating of 4/8 suggest some vol…