Credit put spread analysis · · Moderate setup
Trade history on WDC
Every live credit put spread we've opened on this ticker — what was traded, when, and how it ended.
| Opened | Strikes (S/B) | Expiration | Credit | P/L | Outcome |
|---|---|---|---|---|---|
| May 13, 2026 | $475.00/$455.00 | Jun 11, 2026 | $8.82 | — | Open |
Earlier analyses
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Analyzing WDC after a -5.25% drop to $488.74. While the pullback creates a potential entry point, multiple factors strongly advise against opening a credit put spread here. The stock is up over 50% in just two months, in…
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WDC has seen a significant drop recently, making it an attractive opportunity for a credit put spread. However, the high implied volatility (IV) should be considered when setting strikes. We should wait for a slight pull…
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WDC has seen a significant drop recently, providing an opportunity for a credit put spread. With a current price of $273.74, the market is indicating a potential further downward trend. Let's consider opening a position…
AI analysis
Options Trading Expert · May 12, 2026
The AI's notes below mention opening a position, but the rating (3.2/5) sits below our public-display threshold of 3.5/5, so this setup is marked Hold rather than as a tradable idea.
Analyzing WDC at $494. 09 after a -5. 25% drop.
The stock is up over 50% in two months, indicating a parabolic move that is now showing signs of exhaustion with a significant single-day pullback. The 'Hammer reversal day 5' signal suggests a potential short-term bounce, but the context is critical: the Safety score is a low 6/9, and the Trend score of 92% suggests we are near the peak of a strong uptrend, making it vulnerable to a deeper correction. IV at 93% is elevated, providing decent premium for a credit spread seller.
For a moderately aggressive trader, this pullback into a potential support level offers a reasonable, though not perfect, setup. The goal is to sell a put spread below the current price, betting the sell-off is overdone and the stock stabilizes or bounces. However, the massive prior run-up is a major concern; a single-day drop does not necessarily constitute a healthy consolidation.
A credit put spread here is a bet on the bullish momentum resuming immediately, which carries significant risk given the overextended nature of the move. The premium collected must be meaningful to justify this risk. A spread width of $20-$25 (4-5% of stock price) is appropriate for this price level.
We will target a sell strike approximately 4-5% OTM ($470-$475) and a buy strike $20 lower, aiming for a credit that meets the 0. 25 ratio threshold. This is a decent setup with clear concerns, fitting a 'moderately aggressive' lean to OPEN when reasonable.