Let’s put some capital to work with a new position on digital-advertising platform operator The Trade Desk (TTD), a stock we traded successfully eight times in a row last year.
This is a silly put with a strike price that is more than 10% out of the money to afford us a measure of protection with this volatile stock.
Current Stock Price: $42.39
Action: Sell to open TTD Jan Week Two (1/13) 38 Put
Current Option Price: $0.30-$0.34
Recommended Limit: Set your initial limit order at $0.32. You can go as low as $0.22, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Jan. 13
Potential Rate of Return: 0.8% in eight days, or 38% annualized, if this option expires worthless