Credit put spread analysis · · Good setup
Recommended credit put spread
AI-suggested setup based on the latest screen. Expiration Mar 19, 2026.
- Width
- $4.00
- Estimated credit
- $2.00
- Max risk
- $2.00
- Return on risk
- 100.0%
- Expiration
- Mar 19, 2026
For entertainment purposes only. Not a recommendation to trade. Disclaimer.
Earlier analyses
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This is a strong opportunity for a credit put spread on KMX. The stock has dropped 10.57% recently, and while it's up 23.9% over the past two months, the safety rating is 5/8 and the implied volatility (IV) is only 4%. T…
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The stock has dropped significantly (-10.57%) and shows a strong upward trend (63%) with a good safety rating (5/8). Additionally, it has a lower implied volatility (IV) of 10%. This drop might be an opportunity for a cr…
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This is a strong opportunity for a credit put spread on KMX. The stock has dropped significantly (-10.57%) in the last day, and the data shows it's up 23.9% over the past 2 months with a high IV (89%). However, there's n…
AI analysis
Options Trading Expert · Feb 16, 2026
The significant drop in KMX's price presents a decent opportunity for a credit put spread. The stock has been bullish, up 23.9% over two months, and the hammer reversal day 4 signal suggests a potential trend reversal. However, the safety rating is still high at 7/8, indicating that the stock might still have some resilience.
Given the current price of $42.25, we could target a sellStrike around 5-15% below, let's say $36.79, and a buyStrike around 5-10% lower, around $33.11. This setup results in a reasonable spread width of $3.68, or about 8.7% of the current price.
With a 30-45 days expiration date (for example, 2026-03-24) and considering KMX's IV of 22%, a realistic estimatedCredit might be around $2.00.
While there are some positive signs, there is also a risk of the stock continuing its upward trend. Therefore, this opportunity is not perfect but offers a good risk/reward ratio.